Asian Virus Returns To Scuttle Rupee

FOREX REPORT

The rupee slumped against the dollar yesterday on frenzied buying following a fresh wave of the Asian crisis which impacted the global markets yesterday.

The currency closed at 42.89-92, against 42.66-68 on Monday, but dealers reported late evening deals at 42.95-96.

Forward rupee weakened with the spot; dollar premiums firmed by 8 to 25 paise across the year. Premiums closed at 5.86 percent for one month (4.47 percent on Monday), 7.35 percent for three months (6.50), 8.32 percent for six months (7.65 percent), and 9.20 percent for 12 months (8.65).

Spot rupee opened at 42.68-72 in nervous trade and dollar demand saw it weaken gradually, dealers said.

 

The weakening was accelerated when the Japanese yen crossed 147 per dollar and frenzied buying in noon trade saw it fall to the close, they added.

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. Forward dollar premiums firmed as the rupee came under pressure, dealers said.

Premiums (in paise) closed at: Aug - 9-12; Sep - 33-38; Oct - 64-69; Nov - 94-99; Dec - 129-134; Jan - 164-169; Feb - 195-200; Mar - 233-238; Apr - 269-274; May - 305-310; Jun - 342-347; Jul - 377-382.

In the crosses, the rupee closed at 69.68 against the British pound, 24.05 against the German mark, and 29.15 per 100 Japanese yen.