The Hindu Business Line : Rupee stable; securities fall

MUMBAI: The rupee on Tuesday closed at 45.6200/6250 comparable to Monday's close of 45.62/63 in its value against the dollar despite strengthening of major international currencies against the dollar.

The domestic unit, however, did not strengthen as State- run banks were seen buying up the local dollar supply aggressively, said dealers.

The rupee opened at 45.61/62, touched an intra-day high of 45.5975 on foreign banks selling dollars, and an intra-day low of 45.6450.

The State-run banks were seen buying dollars aggressively, said dealers and took it above the 45.60 mark.

In the forward market, premia discount deepened in the near term. The three months forward closed at - 0.21 per cent the six months forward closed at 0 per cent (- 0.1 per cent) and the one-year closed at 0.20 per cent (0.14 per cent).

The Rs 5,000 crore auction was fully subscribed with 93 per cent of the amount being allotted to 14 bids. The cut- off yield came very much in tune with market expectations at 5.17 per cent with the cut-off price at Rs 119.15 for the 7.38 per cent 2015 paper.

Prices in the g-secs market fell by 20-45 paise from opening levels perhaps affected by the statements by the RBI Deputy Governor that inflation was not falling as expected.

Some indicative papers were the 8.07 per cent 2017 paper, which opened at Rs 124.20 and closed at Rs 123.75/85. The 7.37 per cent 2014 paper opened at Rs 118, closed lower at Rs 117.80/85 with a corresponding yield of 5.12 per cent.

In the inter-bank call money market, rates were easy and funds worth over Rs 47,000 crore were absorbed through the LAF window by the RBI at the repo rate of 4.5 per cent.