11 may 2000

indian rupee crashes to all-time low of 44.07 against dollar
mumbai: the indian currency, which began slipping in morning trades on the back of huge dollar demand from banks, ended at a record low on wednesday at 44.04-/07 to the dollar after touching an intra-day low of 44.08 during the day’s trading. the effective loss of the rupee in a single day’s trade has been 0.89 per cent (39 paise). the rupee hurtled past the 43.70 mark in morning trades, a level the market thought the reserve bank of india would defend through disguised intervention. the last time the rupee had tested the 43.70- mark was on august 20, 1998.

according to dealers, the state bank of india was buying at regular intervals and there were also some foreign banks buying on behalf of foreign funds.

the breaching of the 44 mark saw the whole market was running helter skelter. foreign banks were covering short dollar positions in late afternoon deals. today's rush was also heightened by a bunching up of debt repayment, outward remittances by fiis and demand from oil companies.

market watchers are of the opinion that today’s fall was planned. with the central bank keeping a safe distance away from the melee, sbi’s intervention was purely cosmetic in nature.

standard chartered said to be planning a series of strategic alliances in india
mumbai: after having become the largest foreign bank in india through its acquisition of grindlays bank, the uk-based standard chartered bank is said to be working out several strategic alliances in the country.