The Hindu Business Line : Rupee steady despite heavy dollar flows

MUMBAI: The rupee on Thursday held steady at 45.25 levels despite heavy dollar supplies estimated at $ 300-400 million. According to dealers, consistent buying by the central bank held the domestic currency steady in its value against the dollar.

The rupee touched an intra-day high of 45.2350 and an intra-day low of 45.26 to end the day at 45.2500/2550.

``Foreign banks were selling dollars heavily in the market today, the supplies were possibly from FIIs, NRIs and exporters,'' said a forex dealer in a private bank.

In the forwards market, there was some buying interest from gold importers coming in to buy forward contracts. The six-month forward closed at 0.57 per cent (0.44 per cent) and the one year ended at 0.61 per cent (0.49 per cent).

The cut-off price of the Rs 5,000-crore auction held came below market expectations triggering a marginal fall in prices. The 5.64 per cent 2019 paper came at a cut-off price of Rs 98.32 and a cut-off yield of 5.81 per cent, triggering a fall of 10-20 paise in Government security prices.

The central bank received bids worth over Rs 8,400 crore for the Rs 5,000-crore auction. Some indicative papers were the 10-year 7.37 per cent 2014 paper, which opened at Rs 116.65 and closed at Rs 116.50 with a yield of 5.25 per cent and the 8.07 per cent 2017 paper which opened at Rs 122.40 but closed lower at Rs 122.20 and a yield of 5.62 per cent.

While call rates were easy, funds worth Rs 44,050 crore were accepted through the LAF window at the repo rate of 4.5 per cent.