FORECAST: Call rates seen at 8.40 per cent levels on Wednesday.

Spot Rupee
Political uncertainty at the Centre took its toll on the rupee on Monday, dragging it down to a low of 43 to a dollar. Opening the day at 42.90/95, sharply lower from its weekend's close at 42.69 levels, the rupee went to its low of 43 soon thereafter. "There was a fair of inter-bank interest for dollars in early trades. The State Bank of India also sold dollars. Trades were volatile today", dealers said. In later day trades, the rupee gained to 42.82/85 levels where it closed on receiving by exporters in the spot and corporate dollar sales. Cash/spot went at 1/1.50 paise (2.75/3.25 paise) while cash/tom went at 0.50/1.75 paise (1.75/2.25 paise) and tom/spot 0.25/0.75 paise (1/1.50 paise). The Reserve Bank of India fixed its reference rate for the dollar at 42.95, higher by 21 paise, higher from its previous fix of 42.74. Elsewhere, the Euro opened at 45.61 (45.45) against the rupee, which was also its high for the day's high to finally settle at 45.41 (45.42).

FORECAST: Rupee seen quoting at 42.80-86 levels on Wednesday.

Forward premiums
Forwards premiums closed softer on Monday after opening higher. The six-month annualised forward cover closed almost unchanged at 6.5 per cent (6.45 per cent). "Premiums opened higher in line with a weaker spot-rupee, but receiving by exporters in the forwards as also by state-run banks, saw them go softer by close of trades", dealers said, adding:

"In early morning trades, a few corporates were also seen covering as the spot rupee weakened to 43 to a dollar". In the near terms, May dollars closed at 19/20 paise (19/20 paise) with June at 40/41 paise (42/45 paise) while in the far terms, premiums fell by a higher margin.

November premiums finished at 167/169 paise (171/174 paise), December at 195/197 paise (200/203 paise) with January at 223/225 paise (225/231 paise).

FORECAST: Six-month annualised forward premium seen at 6.50 per cent levels on Wednesday.