Rupee slips to 45.92/$: Reuters

The Indian rupee closed at 45.92 per dollar on Thursday, off lows of 45.96/$ that it touched during afternoon deals. It clawed back marginally due to modest corporate dollar inflows and banks unwinding long dollar positions. However, dealers said that there may not be a major pullback for the rupee yet.

It opened at 45.87/90 after ending on Wednesday at 45.78/79.

Dealers said it was a technical correction after the sharp fall in the morning over Wednesday's close and did not indicate a trend reversal.

"Small amounts are coming in from corporates and some banks have also trimmed their positions. However, given that there are no major dollar supplies on the horizon the view is bearish for the rupee," said a senior dealer at a state-run bank.

Dealers said foreign investors who had turned net buyers in stock markets in August after being net sellers in June and July were yet to signal a definite switch in strategy. "The buying has been in select stocks which have fallen sharply and unless large new fund allocations are made dollar supplies from them will be meagre," said a dealer at a domestic brokerage.

Forward premiums softened marginally from the morning levels with the one-month annualised premium quoted at 6.44 per cent down from the morning's 6.96 per cent.

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