The Hindu Business Line : Re falls to new low at 48.63

UNEXPECTED dollar demand towards the close of trade on Monday pushed the rupee to its weakest at 48.62/63 to a dollar, 10 paise down from its previous close. Dealers said that there were some stray deals struck after closing hours even around 48.64.

The rupee had touched Rs 48.63 intra-day on January 30, but closed at 48.52/53. Today, the rupee closed at 48.62/63.

Market players said that oil major ONGC was in the market for some outward remittances to the tune of $10-20 million. Most foreign banks and State Bank of India were said to be buying dollars. Rumours of VSNL seeking funds for a dividend payout were also rampant.

Dealers said that the next level that the rupee might test would be 48.75 to the dollar.

"It was expected that RBI would protect the level of 48.60 to a dollar and would not allow the rupee to weaken beyond these levels. However, there seemed to be no visible intervention by the central bank,'' said another dealer.

Dealers said that the RBI had been consistently picking up dollars from the market over the past few weeks. For the fortnight ended January 25, forex reserves rose by $ 27 million to $ 49.252 billion.

Dealers said that a large part of this fund could have been mopped up from the market.

Forwards remained largely unchanged with the six-month forward premia ending at 5.60 per cent (5.65 per cent) and the 12-month forward premia closing at 5.30 per cent (5.30 per cent).

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