Rupee Steady, Forwards A Notch Higher

Dealers ascribed the apparent lack of movement in the market to the fact that the extant dollar supplies were adequate to meet the demand emanating from importers.

Resuming the day around the overnight finish of 35.71-35.74, the rupee rose to 35.70 following moderate selling by exporters. Dealers said the State Bank of India was in the market through the day, though its quantum of dollar purchases was less than usual and, as such, did not trigger off a large movement in the rates.

The Indian currency then weakened to 35.73 by late noon after was some stray demand for the greenback. The market later closed with the rupee quoting in the range of 35.71-35.73.

Monthly premiums were hovering around the previous day's close. According to dealers, there was a marginal increase in the forward rates for September-end. The six-months forward dollar was also quoting a shade higher. The annualised rates, were, therefore computed at 10.6 per cent, as against 10.4-10.5 per cent on Monday. Monthly premiums were pegged at 12/14 paise for September, 43/45 paise for October, 72/75 paise for November, 105/108 paise for December, 146/149 paise for January, 177/179 paise for February and 207/210 paise for February.

Internationally, the greenback was stronger against major currencies. The dollar-mark rates shot up to 1.5020-1.5025, after having breached the 1.4930-mark. The dollar-yen rates were quoting at 109.30-109.40, a small rise of 10 to 20 pips. The dollar-Swiss franc rates were at 1.2270-1.2275, up from 1.2150 on Monday.