Financial Daily from THE HINDU group of publications
Wednesday, Jul 21, 2004
Financial Daily from THE HINDU group of publications Wednesday, Jul 21, 2004 |
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Money & Banking
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Forex Rupee weakens; bonds listless Our Bureau
MUMBAI: The rupee closed marginally weaker on Tuesday at 46.10/12 a dollar, as against Monday's closing levels at 46.09. The domestic currency was driven down by "genuine" demand for the greenback, from oil majors and other corporates, dealers said. After opening at 46.09/13, a bout of aggressive dollar buying drove the rupee down to 46.20. At these levels, State-run banks provided support by selling dollars. However, some amount of cash dollar covering by corporates pulled it back to its closing levels. The one-year forward closed a tad softer at 1.75 per cent (1.90 per cent). Bond prices remained depressed in the Government securities market due to fears of high inflation compounded by the weak sentiment over the continued ambiguity on the transaction tax issue. Amid thin volumes of roughly Rs 1,500 crore, stray deals drove down prices of securities towards the end of the day's trade, dealers said. The 10-year benchmark, the 7.37 per cent 2014 paper closed lower Rs. 111.18 as against its closing on Monday at Rs 111.35. The Yield to maturity on this paper inched up to 5.85 per cent as against 5.82 per cent. The 8.07 per cent 2017 paper remained listless at Rs 116.35 per cent, unchanged from its previous levels, dealers said. Call rates remained around 4.25 per cent in the inter-bank market. In the seven-day repo, under LAF, RBI received and accepted 41 bids amounting to Rs. 12,505 crore.
More Stories on : Forex | Govt Bonds
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