Financial Daily from THE HINDU group of publications
Tuesday, Aug 03, 2004
Financial Daily from THE HINDU group of publications Tuesday, Aug 03, 2004 |
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Money & Banking
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Forex Rupee up 15 paise; securities decline Our Bureau
MUMBAI: The domestic currency closed stronger by about 15 paise at 46.3325/3450 against the dollar on Monday, with the US currency weakening overseas. Also, there was a bout of greenback selling by banks, said dealers. The rupee opened at 46.44 and dived to 46.5 - the day's low, said dealers. "There were some inward remittances today and perhaps state-run banks were actively supplying dollars at the behest of the RBI," said a dealer with a PSU bank. The forwards weakened with the six-month closing at 2.35 per cent (2.60 per cent) while the twelve-month ended at 1.91 per cent (2.05 per cent). Bond prices extended losses on fears of rising inflation prompted by comments of a Government official saying "Inflation hasn't hit the roof,"suggesting it might rise higher. Prices fell by over 50 paise across maturities in the Government securities; volumes did not exceed Rs 1,500 crore. The yield on the ten-year benchmark 7.37 per cent 2014 paper eight basis points to close at 6.23 per cent with the 11-year benchmark matching the yield rise. In a thin market, the prices dripped throughout the day as the underlying bearish sentiment had not yet recovered, said a dealer. Call rates eased towards the close from 4.30 per cent during the initial hours to 4.25 per cent near the evening, said a dealer. Under the liquidity adjustment facility window, RBI received 41 bids, which were fully accepted for the amount of Rs 17,315 crore.
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