Financial Daily from THE HINDU group of publications
Tuesday, Aug 17, 2004
Financial Daily from THE HINDU group of publications Tuesday, Aug 17, 2004 |
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Money & Banking
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Forex Rupee weaker; bonds up 50 paise Our Bureau
MUMBAI: The Indian currency extended losses yet again for the second consecutive session on Monday to close at 46.39/41 against the dollar, weaker about 10 paise from previous close. The rupee had ended at 46.31 on Friday. Although the trading was range-bound in a 10 paise band, shortage of supply of dollars drove the rupee downwards , dealers said. Heavy demand from oil importers and short covering by banks primarily moved the rupee down, they said. The domestic currency might test 46.50 levels if the central bank does not step in to supply dollars heavily, said a dealer with a private sector bank. The forwards ended weaker as the six-month forward closed at 2.70 per cent (2.76 per cent), while the twelve-month forward ended at 2.39 per cent (2.41 per cent). Bond prices moved up by about 50 paise in a thin volume market, which saw transactions worth Rs 1,740 crore. Although prices rose on expectation that an oil price hike is not in the offing, the underlying sentiment continues to be weak, said dealers. The ten-year benchmark 7.37 per cent 2014 paper moved up half a rupee to end at Rs 105.75. The 7.38 per cent 2015 paper went upwards from Rs 105.30 to Rs 105.80. Call rates were in the range of 4.40-4.50 per cent. Under the Liquidity Adjustment Facility, the RBI received and accepted 15 bids worth Rs 6,740 crore, while all 38 bids were accepted in one day repo worth Rs 17,855 crore. In the collateralised borrowing and lending obligation market Rs 2,196.55 crore worth of volume was transacted.
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