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Rupee falls further, hits Rs 39

The Indian rupee slipped by another 2 paise to close at 38.99-39.01 against the greenback after hitting an intraday low of Rs 39.04-08 on continued dollar demand by corporates importers and the State Bank of India's persistent two-way interest in a moderately active trade at the interbank foreign exchange market today.

The rupee opened at Rs 38.96-99 and dipped to a low of Rs 39.04-08 due to hectic dollar demand by the corporates coupled with short covering from the importers like the previous two days. However, the active dollar sales by the SBI partly cushioned the rupee's fall to settle at Rs 38.99-39.01 per US unit.

The rupee-dollar outright spot dealings were very active due to good dollar demand, with the forwards seeing a high of 10 to 12 paise over their previous day's closing levels. The cash to spot ended at 0.50 to 0.75 paisa premia.

The trading in the forex market has been reported cautious since the beginning of this week with a persistent dollar demand by the corporates who have approached the market with a fresh look supported with good import short coverings. While the SBI showed a two-way interest keeping a stock of the situation, a forex dealer commented.

The monthly premiums were quoted at, spot December 17-18, spot January 46-49, spot February 73-77, spot March 103-107, spot April 130-134, spot May 152-156, spot June 177-180, spot July 202-207, spot August 225-229 and spot September 230-232 paise premium respectively.

The overseas market today witnessed active trading with the dollar yen strengthening against the US dollar in a big way while the mark witnessed a range-bound trading.

Meanwhile, the Reserve Bank of India fixed the reference rate at Rs 39.05 per dollar as against yesterday's fix of Rs 39.01 per unit.

UNI