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Rupee drops by 3 paise

The market opened at Rs 39.48-49 per US dollar and hovered at the same level till mid-trading. Market player -- the State Bank of India -- entered the market and made dollar purchases which weakened the rupee to Rs 39.52, a chief forex dealer at the leading private commercial bank said.

Most of the deals were conducted in the range of Rs 39.47 to Rs 39.52 before the closing at Rs 30.50-51.

Another forex dealer said the business volume drastically came down to US dollar three to four billion during last one month as compared to US dollar 15 to 16 billion in corresponding period of previous year, he added.

The turnover also crashed by about 50 per cent following turmoil in the Asian markets which are the major players in the forex market, dealers informed.

Only few transaction of export and import booking were conducted in cash to spot dollar and nominal amount of export booking was done in farfoward in merchant section.

However, the US dollar continued to be stronger against the other world major currency in overseas market. The cash to spot dollar quoted at 1-2 paise premium, the monthly forward premiums quoted in paise: 14-15 for April, 31-33 for May, 52-55 for June, 74-75 for July, 100-103 for August, 131-134 for September and 158-162 for October.

Elsewhere, the Reserve Bank of India has maintained the reference rate at Rs 39.48 as against Rs 39.50 on the last working day.

UNI