Rupee falls by 83 paise to end at 46.88 against USD

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Mumbai, Sep 15 (UNI) The Rupee today fell by 83 paise and ended weak at 46.88/90 against the US dollar, its lowest level since July 24, 2006, hit by concerns about capital outflows from the local share market.

The partially convertible rupee resumed low at 46.20 per dollar, and later fluctuated in a wide range between 46.07 and 46.98 during the session. It finally ended at 46.88/90 per dollar.

The Rupee has not traded at 47 per dollar since July 2006, a leading broker said.

India's main share index was down more than 2 per cent, tracking shaky global stocks, hurting sentiment for the rupee.

Dealers said suspected intervention by the central bank at different levels to shore up the rupee slowed the pace of depreciation during the session.

They said dollar demand from banks looking to arbitrage between the local and offshore markets also hurt the rupee.

One-month offshore non-deliverable forward contracts were quoted at 47.20/30, weaker than the onshore spot rate.

Meanwhile. the Reserve Bank of India (RBI) today fixed the reference rate for US dollar at Rs 46.63 per unit, shooting up by 69 paise, against yesterday's rate of Rs 45.94 per dollar.

However. The six-month and annualised forward dollar premium was quoted lower at 1.07 (1.66) per cent and 0.94d (1.32) per cent respectively.

The Rupee ended the day weaker at 66.75/77 (64.95/97 ) per unit against the Euro. It closed at 83.72/74 (81.90/92 ) per unit against the Pound Sterling. Rupee ended at 45.10/12 (43.46/48 ) per hundred units against the Japanese Yen.


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