FOREX REPORT
The rupee breached the psychological 43 per dollar mark and later recovered on central bank dollar sales, said dealers. It closed at 42.95-43.05 against Tuesday's close of 42.89-92 after heavy intra-day volatility.
The forward rupee weakened with the spot, while dollar premiums firmed by 11 to 16 paise across maturities. Premiums closed at 8.06 per cent for one month (5.86 per cent on Tuesday), 9.02 per cent for three months (7.35), 9.03 per cent for six months (8.32 per cent), and 9.55 per cent for 12 months (9.20).
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Spot rupee opened at 42.92-95 and was well bid, but the State Bank of India (SBI) absorbed early demand. However, persistent buying resulted in a breaching of the 43 mark which led to the historic low of 42.35 in noon trade.
At this point, the RBI intervened in several rounds selling an estimated $100 million, which caused the recovery. The RBI's mid-day reference rate was 42.71 against 42.69 on Monday. Cash-tom was 0/.25 paise, tom-spot was 0/.5 paise, and cash-spot was 0/.75 paise. Dealers said, forward dollar premiums firmed up, particularly for near term maturities on corporate buying.
Premiums (in paise) closed at: Aug - 12-16; Sep - 43-49; Oct - 80-84; Nov - 113-118; Dec - 145-150; Jan - 178-183; Feb - 210-215; Mar - 249-254; Apr - 284-290; May - 320-327; Jun - 355-362; Jul - 388-398. At the crosses, the rupee closed at 70.09 against the British pound, 24.24 against the German mark, and 29.55 per 100 Japanese yen.