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Tuesday, Oct 07, 2003

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Rupee down 5 paise; securities rally

Our Bureau

MUMBAI: The rupee on Monday closed 5 paise weaker with the global strengthening of the dollar against all international majors.

The greenback is said to risen on positive employment figures from the US.

The rupee ended the day at 45.4350/4400 against the dollar, down from Friday's close of 45.3850/3950.

The market was rather quiet, said a dealer in a State-run bank with the usual amount of dollar supplies and no unusual demand for it from Indian corporates. The central bank is believed to have stepped in at 45.42 levels to buy dollars.

The domestic currency opened the day at 45.34/36, which was the intra-day high for the day.

In the forwards market, the six-month premium ended the day at 1.10 per cent (1.14 per cent) and the one-year forward closed unchanged at 1.08 per cent.

In the government securities market, there was a smart rally of 50-60 paise on good liquidity conditions and continuing dollar inflows into the country.

Among the indicative papers was the 6.05 per cent 2019 paper, which closed at Rs 105.70 after opening at 105.10. The 6.35 per cent 2020 paper opened at Rs 107.80 and closed at Rs 108.40.

In the inter-bank call money market liquidity was abundant with rates closing at 4.50 per cent.

Through the LAF window, the central bank sucked away 27 bids worth Rs 19,145 crore by way of the one-day repo and 4 bids worth Rs 100 crore by way of the 14-day repo at the repo rate of 4.50 per cent.

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