Rupee closes at all-time lowMUMBAI: The Indian rupee came under pressure on hectic month-end covering by corporates and ended at an-all-time low of 43.60 at the interbank foreign exchange (forex) market on Wednesday. The rupee opened a bit lower at 43.58 and further eased to an intra-day low of the year at 43.60/61 level as market witnessed heavy month-end dollar demand from banks and corporates. However, the SBI stepped in to the market and halted the rupee's further fall by resorting to dollar selling. The rupee recovered slightly on SBI's dollar selling, but still finished at an-all-time (closing) low of 43.59/60, losing two paise over its previous day's close of 43.57 the fall was attributed to technical factors it could trigger a bearish trend unless the central bank steps in to its defence, dealers said. The fall below 43.60 per dollar was anticipated and largely due to month-end factors, but it has brought the rupee within the striking range of a 43.70 all-time low hit inAugust 1998. "There is a lot of underlying dollar demand and 43.60 is a psychological level," said a dealer, adding, "The 43.60 level has not really given way and the market is depending on the RBI to supply the dollars. If they don't, it could spurt lower sharply." A market holiday on September 30 for banks' half-yearly closure of accounts led to large demand for dollars from banks and corporates reaping benefits of high swap differences over the month-end. But the rupee has been showing signs of weakness and in the past two weeks, it has lost 10 paise.Pasupati Spinning defaults paymentMUMBAI: ICRA Ltd has downgraded the long-term NCD/PCD rating of Pasupati Spinning and Weaving Mills Ltd (PSWM) from `LBB' to `LD'. The revised rating indicates default in repayment of principal and interest and recovery is likely only on liquidation or re-organisation.The company is in the business of manufacturing blended yarn, cotton yarn and sewing thread. ``The expansion projects undertaken by the companyfaced excessive time and cost overruns. The additional funding requirements on account of these coupled with rising working capital requirement strained the company's liquidity position,'' ICRA said.According to ICRA, a significant increase in interest cost, high gearing levels and unsatisfactory operational performance in the backdrop of an unfavorable industry scenario affected the debt servicing ability of PSWM resulting in default. In the short to medium term the debt serving ability of PSWM would continue to be under strain due to high gearing, a statement said.
