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Rupee dips to Rs 39.76, but closes at Rs 39.45

After touching an intraday low of Rs 39.76 against the US greenback, the rupee closed steady at Rs 39.45-50, the same as yesterday, in a volatile trading at the interbank foreign exchange market today.

The Reserve Bank of India's receiving in the forwards and the good news of Videsh Sanchar Nigam Limited's inward remittance of over US dollars 500 million, raised by the telecom major through a GDR issue in the system, were the prominent reasons for arresting further fall in the rupee value, forex dealers said.

The Indian currency opened at Rs 39.45-50 per dollar and immediately fell to Rs 39.63-65 and touched the day's lowest level of Rs 39.76 in the morning trade, following good corporate demand. However, the rupee started recovering on the news report of VSNL followed by dollar selling by some Delhi and Baroda based banks after the midsession.

The RBI did not intervene in the spot section but concentrated on the forwards and received the January deliveries, senior forex dealers at Mecklai Financial Services said.

The RBI's presence in the forward section cooled down the forward market where the six month forward premia crossed the 10 per cent limit and touched the new peak of 10.60 per cent and later closed at 10.14 per cent, dealers said.

Cash spot opened higher at 3.5-4 paise premium but closed lower at 2-2.5 paise premium.

A panic-like situation was noticed in the forex market when the rupee touched the day's low of 39.76-81 as importers also started their covering and moderate amount of business took placed at this lower level. However, the RBI's presence gave little indication of stability, and hence the further fall was averted, chief forex dealer at the leading private commercial bank said.

The rupee was traded in the higher level of Rs 39.35-45 level late in the afternoon.

Forward premiums (in paise) closed at 21-23 for December, 53-55 for January, 90-92 for February, 126-130 for March, 160-165 for April, 185-190 for May and 208-213 for June.

The 1-year forward premia closed at 8.31 per cent.

The RBI fixed the reference rate for the dollar at Rs 39.73 as against Rs 39.42 on the last working day.

Elsewhere, the rupee opened at Rs 65.42 against the pound sterling and closed at Rs 65.70 per pound. The Indian currency closed at Rs 22.39 against the mark and Rs 30.37 per 100 against the yen.

UNI