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Wednesday, Nov 06, 2002

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Rupee stable; bonds rally

Our Bureau


THE rupee closed almost unchanged at 48.32/33 against the dollar on Tuesday as compared to Friday's close of 48.33/3350.

There was hardly any movement in the dull forex market, with the intra-day high being 48.3150 and the intra-day low being 48.3250.

The supplies of the dollar were good, having bunched up over the long weekend. However, the dollars were heavily mopped up by state-run banks to cap the appreciation of the rupee, said a forex dealer in a private sector bank.

The corporate demand for the dollar, observed over the last week seems to have dried up. But the currency is not appreciating since the next barrier level seems to be 48.30 which the central bank is not permitting the rupee to cross, said a forex dealer. In the forwards market, the six-month premium closed at 4.07 per cent (4.05 per cent) and the one year at 3.85 per cent(4.00 per cent).

Bond prices were seen rallying by 10-20 paise on the medium term and long-term papers on Tuesday in the government securities market.

The 8.07 per cent 2017 paper opened at Rs 107.90 and closed high at Rs 108.10. In the medium-term papers, the 9.81 per cent 2013 paper opened at Rs 120.00 and closed at Rs 120.20. The 11.03 per cent 2012 paper opened at Rs 128.40 and closed at Rs 128.52.

The expectations for Wednesday's Rs 7,000-crore auction are positive, with the market flush with liquidity. In the inter-bank call money market, the call rates closed comfortably at 5.45-5.55 per cent, with ample liquidity.

In the one-day repo auction, the central bank received 15 bids worth Rs 13,225 crore out of which 15 bids worth Rs 10,580 crore was partially accepted at the repo rate of 5.50 per cent. In the 13-day repo auction RBI received 6 bids worth Rs 15,575 crore out of which 6 bids worth Rs 9,345 crore were partially accepted at the repo rate.

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