Rupee Closes Tad Against Dollar

Mumbai: The rupee was flat against the dollar on Feb 27 as oil companies bought dollars and also because the stock market was negative. Due to overnight weakness in the dollar, the rupee opened higher by five paise at 39.74/75, against the earlier close of 39.79. During the day, the rupee touched a high of 39.72, but dollar-buying pushed it lower to close at 39.78. In forwards, the six-month premia closed at 0.25 per cent (0.2 per cent) and the 12-month closed at 0.5 (0.48 per cent). According to a forex dealer with a public sector bank, the budget is likely to be a populist one and is not likely to have any negative impact. The FII inflows would resume after March 15. The rupee is unlikely to depreciate below 40.25.