Rupee Slips To 35.76, But Rallies Towards Close

The rupee was weaker against the dollar during an eventful day of trading in the inter-bank foreign exchange market.

Resuming the day a higher in the range of 35.72 to 35.74, as against the overnight close of 35.68-35.69, the Indian currency slumped to 35.74-35.76 during the early session following hectic dollar buying by the State Bank of India (SBI). However, it later staged a smart rally, bouncing back to 35.66 in the post-noon session. The massive intra-day gain of 10 paise was attributed, in a large measure, to a veritable dollar selling spree by exporters. However, the gain proved to be short-lived as the rupee subseqently slipped and settled in the region of 35.69 to 35.71 on moderate dollar demand. This was also the closing quote for the day. In the forward segment, monthly premiums were quoting markedly lower across the spectrum.

The rates fluctuated between 4.5-5.00 for September, 18-20 for October, 40-42 for November, 60-69 for December, 97-100 for January, 127-130 for February and 157-160 for March. In the swaps section, cash to spot dollar was traded at a premium varying between 6 and 6.50 paise.

Dull movement was noticed in the cross- currency section, barring a few deals that were conducted between dollar-sterling and d-mark. The pound sterling opened at Rs 55.82, lower from previous close of 55.64. It later settled down at 55.74 during the afternoon trade, dealers said.