The Hindu Business Line : Rupee down 11 paise

MUMBAI: The Federal Reserve Chairman, Mr Alan Greenspan's statements hinting at a `rise of interest rates in the horizon'' has sent the dollar up against all global currencies including the Indian rupee.

The domestic currency crossed the 44-mark to end the day weaker at 44.06/07 in its value against the dollar. The rupee opened lower and lost 11 paise compared to Tuesday's close.

The currency opened at 44, raced to as low as 44.08. The crossing of the 44-mark saw several corporates and exporters frantically selling their dollars in the forward market. The discount in the forwards market further deepened with exporters frantically selling their dollar receivables, taking advantage of the sudden fall in the domestic currency. The six months forward closed at - 0.66 per cent (-0.41 per cent) and the one-year closed at - 0.22 per cent (-0.12 per cent).

The Greenspanspeak had an impact on the bond markets also. The Government security prices opened lower on Wednesday and traded in a narrow range of 10 paise.

Mr Greenspan is giving a two-day testimony to the US Senate.

The 8.07 per cent 2017 paper opened lower at Rs 125.25 after ending on Tuesday at Rs 125.41. It touched a high of 125.32 and a low of Rs 125.24 to close at Rs 125.28. The 7.37 per cent 2014 paper closed at Rs 117.84 at a corresponding yield of 5.07 per cent. Traded volumes were at Rs 5,000 crore as per the NSE data.

Call rates remained in a narrow range of 4.25 per cent. Through the seven-day repo, funds worth over Rs 10,000 crore were absorbed at the repo rate of 4.5 per cent.