The Hindu Business Line : Rupee stays rangebound

The rupee was flat ahead of the long weekend. There was dollar selling in the morning by exporters, on speculation that the RBI may allow the rupee to appreciate because of higher inflation figures. But later oil companies and nationalised banks bought dollars, said a forex dealer with a private bank.

The rupee opened at 39.93 and closed at 39.95, unchanged from the previous close of 39.95/96. It had touched a high of 39.90 during the day. The dollar was muted against other global currencies as well, ahead of the G-7 meeting over the weekend, said the dealer. It lost the gains made in the rally in the New York market yesterday, he added.

In the forwards premia market, the six-month closed at 2.12 per cent (2.13 per cent) and the 12-month at 1.6 per cent (1.59 per cent). Next week the rupee would be in a narrow range between 39.90 and 40, as it is a short trading session of just three days. "Also, it is too close to the monetary policy, so the rupee is likely to be rangebound and around the same levels," the dealer said. - Our Bureau

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