Rbi Measures Push Up Rupee By 3 Paise

Corporates are said to have brought in $150-175 million intio the forex markets yesterday, one day after the Reserve Bank of India asked exporters to liquidate 50 per cent of their balances in export earners foreign currency accounts. Dealers said the amounts coming in were much less than expected. The rupee closed at 45.69, in thin trading yesterday, gaining a bare three paise over Monday's close of 45.72. Dealers said thet expected the rupee to remain range bound between 45.68 to 45.72. "After all liquidation has taken place by the August 23, we see the rupee weakening further due to supplies reducing again," a dealer with a private bank said. In morning trades, the rupee came under some selling pressure due to market sentiment but when there were no inflows forthcoming the rupee remained range bound between 45.65 to 45.68, with most business getting done in this range. Dealers said the RBI had placed additional reporting requirements for large trades. "Any transaction in excess of half a million dollars has to be instantaneously reported to the RBI which further tightens the clamps on the market players, restricting their moves and discouraging speculation," the dealer said. As per the measures issued by the RBI on Monday, all corporates were asked to liquidate half of their EEFC balances as on August 11, by August 23. This is another measure introduced by the RBI in order to curtail the fall of the rupee. "This measure though will help short term supply mismatches, whether it will stem the rupee fall in the medium and long term is yet to be seen," said a dealer with a European bank.