Financial Daily from THE HINDU group of publications
Tuesday, Feb 10, 2004
Financial Daily from THE HINDU group of publications Tuesday, Feb 10, 2004 |
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Money & Banking
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Forex Rupee moves up; bonds weaker Our Bureau
MUMBAI: The domestic currency closed stronger at 45.24 against the dollar on Monday as against its closing at 45.27 last Friday. Dealers said the market was flush with dollar liquidity due to which the rupee continued to be buoyed to higher levels. Absence of corporate demand for the greenback is adding to the rupee's strength, as RBI's mopping up of dollar liquidity alone is not enough to stop the currency's appreciation at these levels. Meanwhile, forwards closed slightly softer, with the six and twelve months ending at 0.50 per cent and 0.45 per cent, respectively, as compared to its previous closing at 0.80 per cent and 0.70 per cent respectively. Bond prices declined by around 10 paise across longer maturities in a lacklustre government securities market. The 8.07 per cent 2017 was the only active paper, according to dealers. This paper opened at around Rs 123.05 but closed at Rs 122.95. The 11.99 per cent 2009 paper opened at Rs 131.53 and fell to Rs 131.47. "The market at this point is not conducive to buying. There is some amount of profit booking taking place. The level at which people are prompted to sell is what is moving the market at this point," said a dealer with a private sector bank. Call rates remained at 4.25 per cent in the inter-bank market. In the one-day repo under LAF, RBI received and accepted 56 bids amounting to Rs 37,305 crore at the rate of 4.50 per cent.
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