Mumbai, Aug 11: The rupee went to a life-time low of Rs 46.07 on Friday - a fall of 20 paise from its overnight close at Rs 45.86 - before recovering to close at Rs 45.80/83. The gain in the spot-rupee by close of trades was in reaction to a statement by Reserve Bank governor Bimal Jalan that a few corporates have been asked to bring back external commercial borrowings, ADR proceeds and sell export earners foreign currency (EEFC) account holdings. Jalan who met finance minister Yashwant Sinha in New Delhi on Friday said, "Wherever the proceeds have beenthere for a long time, we have asked some of them to bring it back. There is nothing new in it."pForward premiums quoted softer on Friday in line with a stronger spot-rupee by close of trades. The six-month annualised forward premium ended at an annualised 4.35 per cent (4.77 per cent).Opening the day at 45.90/95, the rupee went lower on short-term dollar covering by banks and importers coupled with lower dollar supply soon after opening, and registered a 20 paise fall.
"Despite what ever happened today, the rupee may gain in the days ahead because of the improved dollar support position and execution of the measures that Reserve Bank governor Bimal Jalan says he intends to do," observed e-Mecklai's forex consultant N Subramanian, while pointing to Sebi figures on net-FII inflows to the extent of almost $150 million in August.Seniors bankers estimate the outstanding amount in EEFC accounts at close to $2 billion, but this does not mean that much will be available to the market.
The rupee has lost ground by about 112 paise to 46.07 from Rs 44.85/86 on July 27. Cash/tom quoted at 3/4 paise (1/1.25 paise), cash/spot at 4/5 pa ise (3.5/4.5 paise) with tom/spot at 1.25/1.75 paise (3/3.25 paise). RBI pegged its reference rate for the dollar 45.93 as against its previous In the forwards, there was all-round receiving after the governor's statement on external commercial borrowings, ADR proceeds and EEFC account holdings. August dollars ended at 14/15 paise (17/18 paise), September at 29/30 paise (36/38 paise) with February at 103/105 paise (117/119 paise) and March at 119/120 paise (132/134 paise).
The RBI had on last Thursday said that it would take further measures as may be necessary from time to time in order to stabilise the market.
In the government securities market, prices gained by close of trades on Friday after the governor's statement on the forex side and the subsequent recovery in the spot-rupee by close of trades to Rs 45.86. The 12.5% 2004 was seen at 104.85 levels (Rs 104.40) after quoting at Rs 104.20 in early trades. The 11% 2006 finished at Rs 99.85 levels (Rs 99.20).
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