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The Indian rupee posted its biggest single-day fall in more than 15 months on Monday as heightened fears over a likely Greek debt default triggered a flight to safe-haven dollar, while a slump in July's local industrial output data also weighed. The partially convertible rupee ended at 47.22/23 to a dollar, 1.5 percent weaker on the day to log its biggest single day fall since June 1, 2010, after touching a low of 47.23, a level not seen since July 22, 2010.
The rupee had closed at 46.56/57 last Friday. The one-month onshore forward premium was 16.50 points from 18 points on Friday, the three-month was at 44 points from 49 and the one-year was at 114.50 points from 139.25. One-month offshore non-deliverable forward contracts were quoted at 47.45, weaker than the onshore spot rate. In the currency futures market, the most traded near-month dollar-rupee contracts on the National Stock Exchange and the United Stock Exchange both ended at 47.3350.

Copyright Reuters, 2011

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