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Rupee falls by 32 paise

The rupee on Monday declined sharply by about 32 paise against the American greenback following heavy buying from the State Bank of India in an extremely active trading at the Interbank Foreign Exchange market.

The Indian currency opened at Rs 38.93/96 per dollar. It declined to Rs 38.97/99 initially, and crossed the psychological barrier of Rs 39.00 at about 0940 hours, quoting Rs 39.00 per dollar. It came under pressure when importers also followed the SBI and made record covering after midsession. This resulted in a further drop in value to Rs 39.26/28 at the close, showing a fall of about 32 paise over the Friday's close of Rs 38.93/94.

The SBI was seen actively buying dollars throughout the day, dealers said.

There were some reports that the RBI inquired in the forwards, but it could not be confirmed whether the central bank intends to intervene.

The Rupee had witnessed some signs of recovery in the late afternoon trade when exporters entered the market.

Cash-spot business was done at 1.00 paise premium.

The RBI fixed the reference rate for the US dollar at Rs 39.17 per unit as against Rs 38.91 per dollar.

The annualised half yearly premia quoted 16 per cent higher while the annualised yearly premia closed at 14.5 per cent.

The monthly forward premium in paise were quoted at 51-52 for March, 119-122 for April, 171-174 for May, 220-224 for June, 270-275 for July, 310-315 for August, 350-355 for September, 390-395 for October, 430-435 for November, 470-475 for December and 510-520 for January.

Elsewhere, the Rupee was traded in the range of Rs 63.73 and Rs 64.23 against the pound sterling. It closed at Rs 21.60 against the deutsche mark and at Rs 30.40 against the 100 yen.

UNI