Rupee Dips To 40.50, Forwards Zoom

FOREX REPORT

The rupee touched an all-time low of 40.80 against the dollar before closing at a new low of 40.50-55.

On a one way street and a thin market, the rupee went into a tailspin after opening at 39.77-79. Both the spot as well as the forward markets were volatile. The October premiums opened at 195-205, peaked at 210-215 before closing at 163-170. There was receiving at higher levels, and this nudged the premiums down.

State Bank of India was initially buying in the spot, and then sold at higher levels only to buy back at lower levels. The Reserve Bank of India was absent from the market..

Yesterday, one month premiums closed at 9.80 per cent (8.30 on Wednesday), three month at 8.70 per cent (9.15), six month at 9.11 per cent (9.63) and one year at 8.99 per cent (9.50). Yesterday, the cash tom was 0.50-1 paise, cash spot was 1.50-2 paise and tom spot was 1.5-2 paise.

Monthly premiums (in paise) closed at : 11-16 for May, 44-49 for June, 73-80 for July, 103-110 for August, 133-140 for September, 163-170 for October, 193-200 for November, 224-231 for December, 254-261 for January, 1999, 282-292 for February, 1999, 312-322 for March, 1999 and 342-357 for April, 1999.

In the crosses, rupee closed at 65.75 against the British pound, 22.82 against the German mark and at 30.24 per 100 Japanese yen.