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Mumbai:
The forex market remained more or less unaffected by the budget
proposals on 28 February. The rupee saw some slight volatility
initially, but finally settled at 27 Februarys close of
48.7350/7450 to the dollar. The rupee, which opened at 48.77/78,
slipped to an intra-day low of 48.83 on the back of a good demand for
dollars from nationalised banks.
 "The pre-budget session
saw nationalised banks mopping up dollar supplies. But after the
budget announcement, foreign banks started unwinding their long dollar
positions, and the rupee ended steady at the previous days closing
levels," forex dealers said.
They
said the only proposal of immediate consequence to the market is full
convertibility of deposit schemes for NRIs and enabling them to
repatriate in foreign currency their current earnings in India, such
as rent, dividend, pension and interest, based on an appropriate
certification. But most dealers said that this will not have a major
impact on the market in the near term.
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