Rupee fall continues despite RBI steps

quot;The rupee will stay low in the 44.10 to 44.40 region for the next couple of months8230;closer to yesterday8217;s lows, corporates were still unhegded on their payables and would be looking to hedge some of their exposures,quot; said a dealer. Among buyers on Friday were a large petrochemicals firm and an export house, dealers said.

The central bank did not intervene in the spot market, though state-run banks had lowered quotes in afternoon trade to keep a check on the rupee, they said, adding that state-run banks had received premia in the forward market, which kept premia soft despite import paying.

The rupee had fallen to its weakest intra-day level of 44.75 on Thursday before the RBI stepped in with measures, warning against speculation. The RBI imposed a 50 per cent surcharge on the import finance rate and raised the interest on overdue export bills to 25 per cent.

It said it will continue to sell dollars through the State Bank of India SBI and will meet foreign exchange needs towards oil imports and some government debt payments. The RBI said it was not considering monetary tightening. But the government on Thursday announced the auction of a 11-year bond on May 29.