COMMENTARY
INTERVIEWS
SPECIALS
CHAT
ARCHIVES

Corporates lunge for dollars; rupee slips further

• Rs 43.53 vs $
• Rs 43.86 vs euro
• Rs 70.65 vs pound
• Rs 42.23 vs yen (100)

The Indian rupee slipped further against US dollar on sustained dollar buying by corporates and major market players at the interbank foreign exchange market today.

The currency opened at Rs 43.51/52 per dollar in the morning and fell sharply by touching a day's low of Rs 43.5450 before closing at Rs 43.5300/5350, showing a net decline of about two paise from the previous close of Rs 43.5050/5150.

According to forex dealers, few state-run public sector units made dollar purchases in a big amount while State Bank of India also reportedly bought substantial amount of dollars during the course of trading, putting pressure on the Indian unit.

Cash-spot business was done at 0.50-1.00 paise premium. The monthly forward premia in paise were December 4.50-5.50, January 21-22, February 36-38, March 52-54, April 68-70, May 85-86, June 99-101 and July 117-119.

Sixth months and one-yearly premia in percentage closed at 4.29 and 4.51 per cent, dealers said.

In the cross currency deals, the Indian unit, however, posted moderate gains over the previous close. The rupee ended at Rs 43.86 (Rs 44.07) per euro, at Rs 70.65 (Rs 70.66) per pound and Rs 42.23 (Rs 42.39) against Japanse yen.

Meanwhile, the Reserve Bank of India has fixed its reference rate for the US dollar at Rs 43.54 as against yesterday's rate of Rs 43.48 per dollar.

UNI

Business news