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Rupee continues to slide

The Indian rupee drifted lower by 11 paise against the American greenback at the Interbank Foreign Exchange market on Monday.

Trading commenced on a volatile note, but market sentiments cooled later on. The Indian unit showed negligible movement after mid-session.

The rupee opened at 39.73/78 against the US dollar. Later, it plunged to Rs 39.81/83 on heavy demand from corporates and banks and paying pressure from importers. Demand for the US unit was low after the mid-session, which allowed the rupee to close at 39.82/84.

The Reserve Bank of India was absent in the spot section but sold for June and July forwards.

Cash/spot closed at Rs 2-2.50, cash/tom at Rs 1-1.25 paise and tom/spot at Rs 1-1.25 premia.

The monthly premiums (in paise) were 26-28 for January, 69- 72 for February, 104-108 for March, 138-143 for April, 160-165 for May, 187-192 for June and 210- 213 for July. The six-month annualised premia ended at 10.14 per cent.

Overseas trading was reported to be volatile with the mark staging a smart rally against the dollar.

In the local market, pound sterling opened at Rs 64.21 and ended the same. Deutsche mark closed at Rs 21.83 and Japanese yen at Rs 30.14 (per 100 units).

Elsewhere, the RBI fixed the reference rate at Rs 39.82 as against the previous Rs 39.71.

UNI