"It was a similar story for the rupee as it has been in the last three days. The spot rupee opened at 45.35, higher than its previous day's close and on account of some good demand it fell to touch an intra-day of 45.44," said a dealer with a private sector bank.
"With the news of a probable statement from the Reserve Bank of India (RBI), the currency recovered before close," he continued.
The RBI statement did not announce any measures to curtail the rupee fall but clarified its position on the rupee devaluation.
The RBI, indicating that it was comfortable with the fall in the currency, said, "The RBI will continue to intervene directly or indirectly in the market to meet temporary demand and supply mis-matches."
The exchange rate was at 45.44 yesterday against 45.34 on Wednesday.
Today the spot rupee is expected to remain in the broad range of 45.20-45.50. According to dealers, despite the RBI statement, the spot rupee will continue to fall, definitely testing the 45.50-level unless the apex bank decides to enter the market to sell dollars."
Forward premiums rose by a few paise to close higher than its previous day's close but not in the same curve as the spot rupee. The six-month annualised premiums closed at 4.40 per cent against 4.30 on Wednesday.
"Forward premiums remained bid throughout the day on account of the spot rupee as well as the four and the seven day repos," said a dealer with private sector bank.
"Premiums closed two-three paise higher, while on the near-end the premiums moved by around one paise to close higher than its previous day's close," he added.
Today the premiums will remain under pressure with the spot rupee still being seen as "unstable and likely to fall a few more paise tomorrow", according to dealers.