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Rupee down 19 paise, at all-time low again, Rs 43.35/38

The Indian rupee further sank to an all-time- low of 43.35/38 against the US greenback on heavy corporate demand for the dollars, following the devaluation of Russian rouble and continued unstable situation in the Asian economy, at the interbank foreign exchange (forex) market today.

Opening steady at 43.18/21, the rupee moved downwards on continued dollar demand by corporates and banks and closed at a new record low of 43.35/38, against the previous close of 43.17/18, losing its value by about 19 paise.

Finance Minister Yashwant Sinha's statement that the devaluation of Russian rouble would have an impact on the country's economy, caused panic in the market and corporates and banks started dollar buying spree, fearing further rupee fall in coming days and pushed the rupee down to Rs 43.35/38, forex dealers said.

The rupee has depreciated by 25 paise for the last two days, while it has registered a slide by 80 paise in last 18 days of this month.

Commenting on the day's trade, leading forex dealers said the rupee was quiet till 11 am and started the southward trend on the heavy dollar buying by corporates. It was only after State Bank of India's departure from the market at 3.30 pm, the rupee crashed to the new record level, they added.

Dealers also stated that the forex market also came under pressure due to continued selling the foreign institutional investors in the capital market.

The government's new concessions in import and export did not have any impact on the market in a depressed situation, they added.

Forward premiums also moved up on heavy paying pressure and good import booking in all forwards. The third month, sixth month and yearly annualised premiums were quoted higher at 9.17 (8.56), 9.01 (8.51) and 9.36 (9.16 ) per cent respectively. Near forward premiums went up by between 2 and 5 paise while far forward premiums went up betwen 5 and 10 paise. However August premium quoted lower at 14-17 (10-13).

The cash/spot trades were conducted between 1 and 1.5 paise premiums and cash/tomorrow were done between 0.50-1.00 paise premium. The month-wise premiums in paise were August 10-13 (14-17), Setpember 44-47 (42-45), October 78-81 (76-79), November 109-112 (106-110), December 143-146 (137-141), January 174-177 (169-173), February 206-209 (194-197), March 242-245 (232-231), April 278-282 (265-270) and March 305-310 (300-305).

The Reserve Bank of India has revised the reference rate for US dollar at Rs 43.26 against Rs 43.21 of the previous day.

In the domestic money market, the call money interest rates opened lower at 7.50-7.75 per cent, ruled between 7.25 and 8.25 per cent during the day and closed at 7.50-8.00 per cent.

On the overseas market, the pound sterling remained nearly steady against dollar. Deutsche mark was in range bound while the Japanese yen strengthened slightly against dollar despite the devaluation of the Russian rouble. The rupee remained almost steady against sterling and DM but weakened against yen and were quoted at Rs 70.01 for sterling, Rs 24.12 for DM and Rs 29.77 for yen.

UNI