Rupee logs new low at 44.77/$

MUMBAI, JUNE 9. The rupee logged a new low closing quote of Rs. 44.75/77 against the U.S. currency today, as steady dollar demand continued to exert pressure on the Indian unit, despite the central bank's warning to operators to refrain from excessive inter-bank speculation.

In fairly active and choppy trading at the inter-bank foreign exchange market, the rupee dipped to the intra-day low of 44.82/84 in early dealings before dollar sales by a large State- run bank enabled it to rally to 44.72/74 and later settle at 44.75/77 at the finish. The rupee opened at 44.73/76.

Sustained dollar demand from corporates and importers, particularly in early business, pressurised the rupee cosiderably in spite of the Reserve Bank of India's warning to banks not to indulge in speculative inter-bank activity, dealers said.

The rupee declined to 44.82/84, before State Bank of India resorted to dollar sales in its bid to arrest the slide. The Indian unit then rebounded to 44.72/74 as other banks unwound long positions and relative calmness descended on the forex market, with the rupee thereafter trading in the range of 44.74/77.

- PTI

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