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Rupee loses another 10 paise

The dollar opened nearly steady at Rs 39.61-62. In spite of two days supply available, it went gradually up and reached day's high of Rs 39.73-74 in intraday trading. At that level, the State Bank of India sold dollars, appreciating the rupee to Rs 39.68 for the day's high. At the fag end, some commercial banks purchased a good amount of dollars which again weakened the rupee to Rs 39.72-73, leading dealers said.

Another dealer said the statement of Commerce Minister Ramakrishna Hegde that there is no need to appreciate the rupee and the present level is reasonable, made exporters cautious and then they held their trading, expecting the rupee to fall.

They were expecting the rupee to cross Rs 39.70, and as soon as it touched that level, they started selling dollars.

Due to panic in the spot dollar, some exporters concealed their farfoward bookings which also helped the forward premiums rise by 3 to 4 paise in the swaps sections. The cash to spot dollar was quoted at 0.25 paisa premium. The monthwise premium in paise are: 2-4 for April, 17-20 for May, 40-43 for June, 66-69 for July, 91-100 for August, 130-135 for September, 160-165 for October, and 186-192 for November.

The first-month annualised premia worked out to be 3.61 per cent, the six-month was quoted at 7.5 per cent and yearly worked out at 7.76 per cent.

The world major currencies -- pound sterling was traded at Rs 66.92, mark at Rs 22.00 and yen at Rs 30.59 per 100 in cross currency section.

A nominal amount of export and import booking was done in nearforwards in merchant section.

The Reserve Bank of India fixed the reference rate for the US dollar at Rs 39.69.

UNI