Re Gains, But Dealers Skeptical

The rupee pulled back 20 paise from 45.90 after the RBI announced the package of measures, but dealers remain skeptical on whether the gains would hold. The rupee closed at 45.72""10 paise higher than Friday's close. The forwards tracked the rupee and closed higher. The rupee opened at 45.81 and continued falling to the day's low of 45.91 on account of a good demand and slender supplies. Dealers said the demand tapered off once the measures were announced. Additionally, exporters came in to dump dollars. Dealers said the package of measures had been fully anticipated by the market after RBI governor Bimal Jalan spoke of the impending measures on Friday. "This comes as no surprise," most bankers said. "This will increase the supply in the short term and probably the medium term as well," said a dealer. But other dealers said though these measures would add more than $500 million in the next six working days to August 23, the medium term outlook seemed uncertain especially if demand pressures continued. The forwards continued to track the rupee and closed higher than its previous day's close. The six month (annualised) closed at 4.09 per cent, from 4.60 per cent. On the far end the forward closed about 10 to 12 paise.