Re Hardens, But Sheds Gains Towards Close

Resuming the day between 35.62 and 35.63, the rupee hardened to 35.60 on sustained dollar-sell offs, led by the State Bank of India. However, this was followed by a renewed purchases in the American currency, which drove down the rupee to 35.62, the rate at which it has been quoting for the better part of this week. Dealers said the dollar sales could be traced to the offloading of GDR funds by banks. However, with the bulk of these funds flowing to the RBI, only the remaining are finding their way to the market. The forward premia rates were also steady, quoting around Tuesday's figures. The annualised rates for the six-month forward dollar was at 8.5 per cent. They are, however, expected to ease to 6.5 per cent. Monthly premiums were quoting at 7/9 paise for October, 25/28 paise for November, 47/50 paise for December, 77/80 paise for January, 103/106 paise for February, 135/138 paise for March and 163/166 paise for April.

 

Internationally, the greenback was range-bound against most major currencies. Dealers said the dollar-mark rates were ruling between 1.5280 and 1.5300, while the dollar-yen rates were quoted between 111.40 and 111.60.