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| An acute dollar shortage in the cash market and near-term (forward) covering by importers pulled the rupee down from 45.41to a dollar at close on Monday to 45.71/72 today. |
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| The discount on the forward dollar deepened across all maturities as exporters continued to dump dollars in the forward market. |
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| In a day marked by extreme volatility, the rupee opened at 45.40/42 but came under heavy dollar demand from corporates and importers. Supplies were also limited on account of the Columbus Day holiday in the US yesterday. |
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| Market players say the cash dollar crunch in the local market is the outcome of the Reserve Bank of India buying $2.8 billion in the forward market between end-September and early October to help the State Bank of India redeem the Resurgent India Bonds (RIBs) worth around $5.2 billion. |
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| The rupee has lost 0.94 per cent in just three sessions after hitting a three-year closing high of 45.26/27 on Thursday. The rupee is still up 5.02 per cent against the dollar since January 2003. |
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