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Thursday, Jun 10, 2004

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Rupee breaches 45; securities weak

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MUMBAI: The rupee breached the 45-mark on Wednesday to close at 44.97/99 against the dollar, up from Tuesday's close of 45.02/03.

There was heavy dollar supply in the market, said dealers. The public sector banks and the corporates were buying dollars in the market, while the foreign banks were selling. The forward markets ended in the premium although it had receded in the past two days. The six-month forward closed over 4.50 paise into premium at 0.23 per cent (0.06 per cent) and the 12-month forward closed over 9.50 paise into premium at 0.25 per cent (0.14 per cent).

The bond market moved in a 10 - 15 paise price band after opening on a weak note. Dealers said due to fears of a Fed rate hike, the market was nervous and no one wanted to hold positions. However, some buying interest was observed towards the end.

The 8.07 per cent 2017 paper opened at Rs 121.50, fell down to 121.30/33 before closing higher at Rs 121.45 at YTM 5.57 per centThe 7.37 per cent 2014 paper opened at Rs 115.90 before closing at Rs 115.80/85 at YTM 5.28 per cent. The 7.49 per cent 2017 paper opened at Rs 116.00 and fell slightly to Rs 115.95 at YTM 5.72 per cent.

The call rates were in the range of 4.40-4.50 per cent. It had tightened slightly on account of a borrowing lending mismatch.

Under the LAF, RBI received 33 bids at Rs 9,200 crore, which were accepted fully. In the 91-day Treasury Bill auction, 23 bids to the tune of Rs 2,000 crore were accepted out of 35 bids. In the 364-day Treasury Bill auction too, 29 out 45 bids amounting to Rs 2000 crore were accepted.

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