Opening the day at 46.21/23, lower from its last close at 46.17/18, the rupee went down further to 46.32/33. "Market sentiment was affected after S&P's revised rating. There was good corporate and inter-bank dollar interest", a dealer said.

The rupee has been under pressure since Tuesday. It fell after the Reserve Bank's mid-term monetary and credit policy review, more so after the restoration of exchange earners foreign rupee down currency (EEFC) raised fears of lesser dollar inflows.

The fall in the rupee on Wednesday though was purely on dollar buying interest in the wake of S&P's revised outlook.

Most dealers though said that Moody's statement that it will not revise its outlook on India from "positive" will act as a comfort to the market. The life-time low for the rupee is 46/41.42, but few dealers see a rapid fall in the currency.

"The rupee may come under slight pressure, but I do not think there would be any free fall. There is just cautious buying interest", a senior dealer with a European bank said. At close of trade, the rupee was seen at 46.27/28 or thereabouts.

Forward premiums rose a shade, tracking the weak spot rupee at an intra-day low of 46.35/36. Near forwards moved up by 3-4 paise while far forwards rose by 8-10 paise. October dollars quoted at 10.50/11 paise and in the far forwards, April quoted at 112/114 paise and May at 127/129 paise.

Bond prices too fell. The 11.40 per cent 2008 was traded at Rs 100.05 with the 12.50 per cent 2004 at Rs 105.60.

Bond prices were also depressed as call rates perked up in the light of the weakness in the spot-rupee. Opening the day at 9-9.25 per cent from its last close at 9.05 per cent, call rates went higher to 10-10.15 per cent levels.