According to dealers, trading activity was subdued in the spot and the forward markets owing to slack demand. Even corporates stayed away.
The rupee resumed the day around 35.71 and was largely traded in the range of 35.71 to 35.75. The spot market eventually closed around 35.72. A few bankers, however, expressed surprise at the lack of demand for dollars. They disowned the proposition that the market was waiting for the SBI issue, adding that the leading nationalised bank would first sell dollars to the RBI. There was, therefore, no certainty on the exact quantum of funds that would flow into the market.
The forward segment also remained dull. Most monthly premiums, therefore, remained around last week-end's figures. There was, however, a marginal fall in the near-term premiums.
The annualised rates stood at 10.3 per cent for the six-month forward dollar. The monthly premiums were quoting at 1/2 paise for September, 28/31 paise for October, 54/57 paise for November, 84/87 paise for December 121/124 paise for January, 150/155 paise for February, 181/186 paise for March end. Dealers expect that the annualised rates will come down and settle between 9 per cent and 9.5 per cent.