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Rupee hits Rs 41.22, closes at Rs 41.14-17

The rupee depreciated further by 20 paise against the US dollar as panic buying of dollars by corporate sector and banks continued in the interbank foreign exchange market today. This follows Standard and Poor's revision of its long-term India outlook to 'negative' from 'stable'.

The low of Rs 41.18/19 levels before closing at 41.14/17. Most of the time the rupee remained Rs 41.10/15 level most of the business was conducted in the same range.

Major market player State Bank of India did not participate actively in the market, while the some foreign banks have reportedly made dollar purchases today, dealers said.

The six-month annualised premium was quoted at 8.96 per cent while the yearly premium was at 9.13 per cent.

According to dealers, nominal merchant booking was conducted today as the importers and corporate were cautious about the future movement of the rupee.

Cash-spot business was conducted at 0.25-0.75 paisa premium, while cash/top was done at 0.25-0.5 paisa premium. Forward premiums remained almost steady. The monthwise premium, in paise, were closed at 0.50-0.75 for May, 30-33 for June, 58-63 for July, 88-93 for August, 123-128 for September, 156-161 for October, 189-194 for November and 220-225 for December.

The rupee also weakened against the pound sterling and Deutsche mark. It quoted Rs 67.28 against the pound and Rs 23.43 against the mark while the rupee slightly edged up against the yen and quoted at Rs 29.88 per 100 yen.

The Reserve Bank of India fixed the reference rate for the dollar at Rs 41.13 as against Rs 40.92 of the previous day.

UNI