Financial Daily from THE HINDU group of publications
Wednesday, Apr 07, 2004
Financial Daily from THE HINDU group of publications Wednesday, Apr 07, 2004 |
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Money & Banking
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Forex Rupee weakens; MSBs well taken Our Bureau
MUMBAI: The rupee has dipped by seven paise to end the day at 43.74/75 in its value against the dollar. The RBI's stance in the market has really changed when compared to the last week and they have actively started supporting the domestic currency. The currency opened at 43.6850/6950 and touched a low of 43.7750. The dollar inflows were heavy, but there was no corporate demand for the greenback. The RBI stepped up intervention in the market thereby facilitating depreciation in the rupee, said a dealer in a private bank. In the forward dollars market, the premia softened with exporters coming in to sell contracts and book profits. The six months premium closed at 0.42 per cent (0.56 per cent) and the one-year closed at 0.36 per cent (0.47 per cent). The first tranche of market stabilisation bonds received an overwhelming response. The Rs 5,000-crore auction received bids worth over Rs 12,000 crore. The cut-off price and yield of the 6.18 per cent 2005 paper was in tune with market expectations at Rs 102.21 and 4.53 per cent respectively. In the g-secs markets, prices came down by 10-15 paise on the back of the rise in US yields triggered by positive job data. Some indicative papers in the domestic market were the 8.07 per cent 2017 paper, which opened at Rs 124.63/65 and closed at Rs 124.75 at an yield of 5.37 per cent; and the 6.25 per cent 2018 paper which opened at Rs 107.70 and closed at Rs 107.62. There was good buying interest from nationalised banks which had with no other option to deploy their surplus funds. Call rates fluctuated with the lowest rate at 3.5 per cent. Through the seven-day repo, funds worth Rs 19,455 crore were absorbed at the repo rate of 4.5 per cent.
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