Rupee falls by 70 paise to 43.75/76 against USD

Mumbai, Mar 29 (UNI) The spot rupee drifted lower by 70 paise and ended weaker at 43.75/76 against the US dollar as compared to its previous close of 43.05/07 on sustained heavy purchases of dollars by foreing banks, dealers said.

Before slumping downwards, the rupee fluctuated between 43.23 and 44.80 per USD during the session. The domestic unit declined as traders squared off short dollar positions as liquidity slowly came back into the system owing to sharp fall in inter-bank lending call rates. Importers and corporations also purchased dollars to settle overseas payments.

Forward premia remained volatile throughout the session as importers and exporters took advantage at the respective levels.

Overall, premia ended 24-25 paise lower. Six-month and 12-month forward premia closed at 4.05 per cent (5.31) and 3.46 per cent (4.02) respectively.

The Reserve Bank of India (RBI) today fixed the reference rate at Rs 43.47 per US dollar, down by 33 paise, as compared to its yesterday's rate of Rs 43.14 per USD, according to a RBI spokesperson here.

Besides, the domestic unit witnessed a firm trend against major world currencies. Against the Euro it closed high at 58.32/34 (57.12/14), while Pound also finished at 85.92/94 (84.12/14) per unit each and Yen was quoted at 37.26/28 (36.54/56) per 100 units, brokers added.

UNI