The rupee has lost nearly 1.50 per cent in the fiscal till date having closed at 42.43 at end-March 1999.

"The strong statement by the Reserve Bank's deputy governor pulled the rupee down today. Trades were, however, largely inter-bank", Mecklai Financial Services senior vice-president, KN Dey, said adding: "the rupee will quote between 43 and 43.10 in the coming days".

Opening the day at 42.98/99 from its last close at 42.97/98, the rupee touched an intra-day low of 43.04/04 as a few corporates and the State Bank of India bid for dollars in early trades. News of Pakistani foreign minister, Sartaj Aziz's visit to India on June 12 helped the rupee recoverto 42.9850/9950 by noon. However, a fresh bout of short covering by banks put pressure on the rupee pulling it down to 43.03/04 by close of trades. Cash/spot quoted at 0.75/1 paise (1.75/1 paise) with both cash/tom and tom/spot going at 0.25/0.50 paise.

In the forwards, there was hardly an covering save for some scattered receiving. "Demand for forward dollars is poor. The spot-rupee movement is being caused largely by inter-bank play, and less on account of any active corporate demand for dollars", dealers said.

In the near terms, June premiums closed at 9/11 paise (10/11 paise), July at 24/27 paise (26/29 paise) with August quoting at 44/47 paise (46/49 paise) while in the far terms, February dollars closed at 179/182 paise (183/186 paise) with March at 205/208 paise (209/212 paise).