Financial Daily from THE HINDU group of publications
Wednesday, Feb 18, 2004
Financial Daily from THE HINDU group of publications Wednesday, Feb 18, 2004 |
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Money & Banking
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Forex Rupee steady; bond prices soar Our Bureau
MUMBAI: The rupee closed on Tuesday at 45.2875/2925, almost unchanged from Monday's close of 45.2850 in its value against the dollar. The domestic currency opened at 45.28/29 and touched an intra-day low of 45.31 on limited dollar supplies. A large private sector bank was seen mopping up dollars, said a forex dealer, possibly to cover its short position. Meanwhile, the regulator abstained from dollar absorption on Tuesday. In the forward market, the premia lowered further. However, the trend is expected to reverse since the yields in the bond markets have stiffened over the past few days, said a forex analyst. The six-month premium closed at - 0.09 per cent (-0.17 per cent), and the one-year premium closed at 0.29 per cent (0.35 per cent). In the G-sec market, prices soared by as much as Re 1 in the longer maturities as buying interest picked up. Mutual funds and nationalised banks found the prices low enough to make an entry as most players were sitting light on positions, said a dealer from a bond house. Some indicative papers were the 6.25-per cent 2018 paper, which opened at Rs 103.90 and closed at Rs 104.72; and the ten-year benchmark, 7.37 per cent 2014 paper which closed at Rs 116.20 with a corresponding yield of 5.29 per cent, up from Monday's closing price of Rs 115.82 and yield of 5.33 per cent. In the inter-bank call money markets funds were aplenty as usual and call rates ruled below 4.5 per cent. Through the LAF window, the central bank accepted over Rs 40,000 crore at 4.5 per cent.
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