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Re stable in dull trading; call steady at 8-8.05 pc

MUMBAI

THE rupee closed steady at 46.76/7650 to the dollar in a lackluster forex market on Friday, as against Thursday's close at 46.7550/76.

``The market was dull except for some moderate demand from diamond merchants, which was squared off by supplies from exporters selling dollars today,'' said a forex dealer with a private sector bank.

Demand and supply were evenly matched today. With international oil prices declining, exporters started selling aggressively in expectation of the rupee staying range-bound or steady at the current levels, said forex dealers.

``The rupee is unlikely to fall below 46.80 levels in the short-term. Speculation around oil seems to have died down and the general slowdown in the US economy augurs well for the Indian currency in the near term,'' said an analyst.

The six-month premium ended at 3.76 (3.84) and that for one year at 4.1 per cent (4 per cent).

Securities volatile: The securities markets were volatile with the actively traded papers riding a roller-coaster on account of buying pressure and profit-booking alternatively.

The 11.50 per cent 2011 which had traded up to Rs 101.05 on Thursday, touched a high of Rs 101.55 on Friday before settling at levels of Rs 101.35. The 11.40 per cent 2008 paper moved up to Rs 102.72 and ended trade at around Rs 102.55, against the previ ous close of Rs 102.26.

``The securities markets were quiet choppy and trading took place in spurts. This could be because the markets have been anticipating a cut in interest rates -- either a reduction in the PPF or the repo,'' said a securities dealer in a nationalised bank.

Call rates continued to hold steady at around 8-8.05 per cent today.

In the repo auction under LAF, the RBI received and accepted four bids of Rs 4,850 crore at a cut-off rate of 8 per cent. -- Our Bureau