The rupee touched a fresh historic low of 43.37 on negative market reaction to finance minister Yashwant Sinha's statement on Monday. Sinha had said that the rouble devaluation would have an unfavourable on the rupee.
It closed at 43.32-36 against Monday close of 43.17-20. The forward rupee dipped sharply, particularly for near maturities, lending an inverted shape to the forward dollar premium curve. Premiums closed at : 1-month - 9.28 per cent (7.99 on Monday); 3-month - 9.23 per cent (8.83); 6-month - 9.11 per cent (8.46 per cent); 9-month - 9.52 per cent (9.00); 12-month - 9.55 per cent (9.20).
After opening at 43.17-20, the rupee weakened steadily on continued buying in low volume trade. The State Bank of India (SBI) sold a small quantum of dollars without any impact.
Cash-tom closed at .25/.5 paise, tom-spot at .5/.75 paise, and cash spot at 0.75/1.25 paise. The RBI mid-day reference rate was 43.28 against 43.21 on Monday.
Forward dollar premiums curve took on an inverted shape on increased buying interest for near maturities as corporates sought cover on expectations of near term volatility, dealers said.
Premiums (in paise) closed at: Aug - 10-13; Sep - 43-48; Oct - 77-82; Nov - 109-114; Dec - 145-150; Jan - 176-181; Feb - 207-212; Mar - 245-250; Apr - 282-287; May - 320-325; Jun - 355-360; Jul - 389-394. In the crosses, the rupee closed at 69.97 against the British pound, 24.09 against the German mark, and 29.75 per 100 Japanese yen.
