Re ends at new low against $

MUMBAI, APR 20: A late burst of dollar short-covering by banks exerted fresh pressure on the rupee and it ended at a new record low agains...

MUMBAI, APR 20: A late burst of dollar short-covering by banks exerted fresh pressure on the rupee and it ended at a new record low against the US currency in fairly volatile trade at the interbank foreign exchange (forex) market here today.

The rupee closed at Rs 43.6600/6650 per dollar, a fresh record-low logged for a closing quote and a 1-1/2 paise decline from overnight levels of Rs 43.6450/6500. The Indian currency dipped to intra day lows of Rs 43.6650/6700 towards the fag end of the day.

Opening around Rs 43.6425/6500, the rupee traded actively in a range of Rs 43.6375 and Rs 43.6675, encountering renewed pressure on a late bout of dollar demand.

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The Indian currency had plunged to historic-lows of Rs 43.68/72 on August 19, 1998 following economic sanctions imposed on India after its nuclear tests.

All-round dollar demand towards the closing minutes of trade took a fairly heavy toll in the rupee value as most of the banks both in the private and public sector were seen bidding the greenback, dealers said.

The rupee’s decline, however was gradual and orderly, devoid of excessive speculation and volatility, they added. "The forex market is slightly wary of the rupee’s latest slide which has placed it within striking distance of its all-time lows of Rs 43.68/72. If, the 43.70-dollar barrier is pierced, it may trigger a major demand for dollars that could considerably weaken the Indian unit," a forex dealer said.