The rupee ended firmer today at 47.8300/8350 against the dollar compared with yesterday's closing of 47.8550/8650 as exporters and banks used the dollar spike caused by the yesterday's Parliament attack to offload positions. It depreciated by 5 paise on Thursday in the wake of the terrorist attacks.
The rupee opened higher at 47.85/87 as yesterday's attack continued to overshadow the sentiment in the interbank forex market. However, it drifted lower in afternoon trades on the back of lack of demand, coupled with regular merchant supplies.
Though the rupee stabilised towards afternoon, the players were reluctant to take fresh large dollar position due to the continuing uncertainty.
Dealers said, the market was jittery about developments over the long weekend and that uncertainty prevented further rises in the rupee. They said trades most of the trades were done in a 47.82-47.87 range and a private sector bank had made large dollar purchases.
"We expect lots of dollar supplies on Tuesday, but the market was reluctant to go short. Anything can happen during the weekend," a dealer with a private bank said.
"There was some demand, but once this was met, there were no bids (for the greenback)," a foreign bank dealer said. "All those who had bought in the morning unwound their (dollar) positions," the private sector bank dealer said.
In the forwards segment, the six-month annualised forward premium dipped to 6.25 per cent compared to 6.30 per cent yesterday, while the one-year forward premium remained unchanged at 6.10 per cent.
The trade in this segment was dull except in early trade when a few banks sold forward dollars.
For rest of the day the rupee premiums for forward dollars remained largely unchanged in the absence of fresh market moving factors, dealers said.
In early trade, banks sold forward dollars on the back of an easy call rate, dealers said. Later, as the call rate softened further there was hardly any activity in the forward market.
Markets in most centres are closed for a festival on Monday. On Tuesday, the rupee is likely to remain between 47.80/90, while the forward premiums will remain rangebound.
