Rupee rules steady in thin deals

MUMBAI, AUG. 20. The rupee ruled steady against the U.S. dollar today in an extremely thin and listless dealings at the inter- bank foreign exchange market ahead of a string of holidays.

Closing at 47.1250/1300 a dollar, unchanged from last Friday's levels, the rupee was confined to a tight one paisa range of 47.1250 and 47.1350 in muted business. It opened at 47.12/13.

The forex market will remain closed tomorrow on account of Parsi New Year and on Wednesday for Ganesh Chaturthi.

The rupee-dollar outright spot dealings remained subdued and within a tight band due to lack of market-moving factors.

Dollar supplies accumulated over the weekend gave the rupee slight underlying support, but mild dollar demand from State-run banks prevented the currency from appreciating, a dealer said.

``The forex spot trading remained quiet following persistent waning interest. Moreover, most operators were reluctant to take fresh positions ahead of two consecutive holidays." ``They would rather keep positions square than go long or short on the dollar," he added.

Meanwhile, the Reserve Bank of India fixed the reference rate at Rs. 47.13 a dollar, unchanged from last Friday.

- PTI

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