BUSINESS

Rupee remains steady in thin deals

MUMBAI MAY 29. The rupee ended barely changed against the U.S. currency today in an extremely thin and lacklustre trading at the interbank foreign exchange market.

After moving in a tight band of 48.9700 and 48.9950 a dollar in muted business, the rupee closed at 48.9750/9800, little changed from Tuesday's finish of 48.9750/9850. It opened at 48.9650/9750.

The rupee-dollar outright spot dealings were quiet and range-bound due to lack of market-moving factors.

Light dollar demand was absorbed by available supplies, dealers said. The developments on the Indo-Pak border would determine the rupee trend tomorrow, they added.

Marketmen expect the rupee to remain under pressure in the near-term because of the ongoing tension in the subcontinent, but a steep downward rupee slide will be prevented by timely intervention by the central bank in support of the currency.

The RBI maintained the reference rate for the U.S. currency at Rs. 48.99 and fixed the Euro at Rs. 45.50. In cross currency deals, the rupee weakened further against both Euro and the British pound sterling. — PTI

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