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RBI resolve to protect rupee buoys market; rupee touches 43.44 vs $

• Rs 43.35 vs $
• Rs 45.30 vs euro
• Rs 68.92 vs pound
• Rs 35.75 vs yen (100)

The rupee came under pressure and fell to an intra-day low of Rs 43.43/44 to the US dollar on dollar demand from corporates and short covering by banks at the interbank foreign exchange market today.

Opening at Rs 43.30/32 a dollar, the rupee fell to a low of Rs 43.43/44 on heavy demand from players who were uncertain about the likely fallout of the Kargil conflict. The rupee, however, recovered to Rs 43.38 on reports that the Reserve Bank of India governor Dr Bimal Jalan's assertion that the RBI will monitor the forex market and take adequate measures to keep the market orderly.

The rupee ended at Rs 43.35/36, showing a net loss of four paise over the previous close of Rs 43.32.

The forwards tracked the spot rupee movement and were quoted at higher levels. The monthly premia (in paise) were 20-22 for July, 41-43 for August, 60-63 for September, 81-83 for October, 101-103 for November and 119-121 for December. The six-month annualised premia ended at 5.60 per cent.

Cash/tomorrow ended at 1.50-2.00 paise, tomorrow/spot at 0.25-0.50 paise and cash/tomorrow at 1.25-1.50 paise.

Meanwhile, the Reserve Bank of India fixed the reference rate at Rs 43.39 from the previous close of Rs 43.33.

The rupee ended at Rs 68.92 to a pound sterling, Rs 45.30 to a euro and Rs 35.75 a yen.

UNI

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