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Rupee stabilises,... almost

The rupee showed signs of stability today as leading banks and corporates, whose scramble for the the American currency and nervous short-covering pushed the rupee to its 21-month low, adopted a wait-and-watch approach and participated in a nominal way in a less choppy trading at the interbank foreign exchange market.

The rupee opened slightly stronger at Rs 37.39-40 and moved in a narrow range compared to yesterday's trading, when the rupee fell by 51 paise . There was some demand from merchants and corporates in the morning, due to which the Indian unit peaked to Rs 37.49. The Reserve Bank of India sold a moderate quantity of dollars which brought the rupee to Rs 37.41/43, a senior forex dealer informed.

The State Bank of India was active in the market just before the close of trading. According to dealers, SBI's client covering eased the rupee to end at Rs 37.44/46.

Dealers put the RBI's selling in today's trading at US $85-90 million.

Cash spot and tom spot closed at 0.125 paisa each, while cash tom ended at 0.25 paisa discount.

Bankers felt that the rupee will stabilise at Rs 37.50 levels as the RBI is intervening selectively in that direction.

Forward premiums based slightly to close at 3-4 paise for November, 23-25 December, 45-48 for January, 65-68 for February, 89-92 for March, 110-113 for April and 129-132 for May, spot/October 1998 ended at 226-231. The six-month annualised premia closed at 6.98 per cent.

The fall of the Indian rupee took its toll on the prices of Indian global depository receipts (GDRs) The Skindia GDR Index fell by 6.52 per cent to 916.42 points, while the Skindia GDR Index Premium plummeted by over 20 per cent.

According to Vishal Jain of Skindia Finance, the fall in GDRs is basically on account of the stock mark crash in the Southeast and East Asian markets, which has had a downward impact on the bourses in India. He said that the fall of the rupee has compounded this problem which has resulted in the GDRs to plummet. Of the 64 GDRs listed in London and Luxembourg markets, 43 drifted lower in a single trading session.

Trading at the overseas markets was quiet with the pound and yen easing marginally against the dollar.

Back home, the pound sterling closed at Rs 63.18, yen at Rs 29.41 per 100 units and mark at Rs 21.61.

Elsewhere, the RBI fixed the reference rate at Rs 37.43 as against the previous fix of Rs 37.52.

UNI