Rupee ends 10 paise lower against dollar

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Mumbai, Sep 28 (UNI) With the Reserve Bank heavily supporting the falling dollar by constantly intervening in both sessions, Rupee underwent a significant correction today and ended at 39.80/82 per dollar, down by nearly 10 paise from the last close of 39.70/71 per dollar.

On the other hand, mirroring the tightening liquidity in the system, banks borrowed Rs 9,735 crore from the regulator while in the sigle reverse repo LAF window, the Reserve Bank sucked out Rs 3,665 crore accepting all the five bids received.

Rupee, which started the day at 39.69/70 per dollar, traversed upwards in the forenoon session on strong foreign investment inflows to mark a day's high of 39.71 per dollar before falling back on constant intervention from the central bank. Following this, the domestic currency touched a day's low of 39.84 per dollar during the day.

''A correction from RBI is likely to happen in next week which may take Rupee further down to 40.20 levels,'' said Mr Sudharshan Bhatt, senior dealer with Corporation Bank.

Forward premia fell marginally today as it was quoted at 0.77 (1.05) per cent in six-month contract and 0.95 (1.23) per cent in annualised contract.

Against major currencies, Rupee ended at 56.50 (56.16/17) per unit against euro, at 81.05 (80.31/32) against Pound Sterling, while Japanese Yen was quoted at 34.54 (34.39/42) per hundred units each.

The Reserve Bank today fixed the reference rate at Rs 39.74 per US Dollar.

UNI

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