Rupee closes weak on import demand

quot;Even today a large nationalised bank was selling, butimport interest was sustained,quot; a dealer with a private bank said.

Dealers said corporate demand also led to some paying innear-term forward premia.

Farther maturities should stabilise and flatten if theUnited States hikes rates again at Tuesday8217;s meeting, they said.

Dealers said the market had discounted the likelihood ofMonday8217;s twin government bond auction being fully subscribed and its impact on liquidity.

The Reserve Bank of India will conduct a twin bond auctionof 2003 and 2006 maturity government bonds worth 50 billion Rupees later in the day.

The six-month premium ended at an annualised 2.50 per cent on Monday against 2.44 percent the previous day.