Financial Daily from THE HINDU group of publications
Wednesday, Dec 15, 2004

Cross Currency

Group Sites

Money & Banking - Forex

Rupee stronger; gilts decline

Our Bureau

MUMBAI: A struggling dollar against other major currencies, foreign investment inflows and exporters selling greenbacks aided the domestic currency's recovery for the second straight session.

The rupee closed stronger on Tuesday by around 17 paise, finishing at 44.11/12 against the dollar against its previous close at 44.2750/2850.

"It was a volatile movement for the rupee, as it appreciated 19 paise to the day's high at 44.06 per dollar almost immediately after it opened," said a dealer.

Demand for greenbacks seen from exporters and some public sector banks led the rupee to weaken slightly towards its close, dealers said.

"The home currency is expected to test 44 levels in the next trading session," said a dealer at a private sector bank.

Forward premia shot up as the six-month annualised forward premia closed at 1.82 per cent (1.50 per cent). The one-year forward premium ended at 1.38 per cent (1.24 per cent).

In the bond market, gilt prices were driven down by nearly 30 paise than previous closing levels, as tightness in liquidity kept buyers of Government securities at bay, dealers said.

Yield on the benchmark 7.38 per cent 2015 paper went as high as 6.75 per cent, before ending softer at 6.73 per cent. The 7.55 per cent 2010 paper closed at highest yield for the day at 6.52 per cent.

Concerns regarding advance tax outflow and expected Fed rate hike led market players play safe, said a dealer.

Overnight call rates in the inter-bank market ended higher, in the range of 4.80-5.15 per cent. Under the LAF window, 9 bids worth Rs 3,3325 crore were accepted and received in the one day reverse repo. In the CBLO market, 115 trades worth Rs 5,523.55 crore were transacted.

More Stories on : Forex | Govt Bonds

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Will the US see inflation creep?

Rupee stronger; gilts decline
IDBI accepts 415 VRS applications
Roadmap for 74 pc FDI — Ministry favours segregating strong from weak pvt banks
YES Bank, Wipro Infotech sign 7-year outsourcing deal
Deutsche Bank to arrange funds for RIL
IDBI funding for power projects
SBT offers higher rates for senior citizens
Polaris BPO unveils credit card biz solution
BoBCards opens one more centre
Bank officers threaten stir against mergers
Federal Bank to host seminar on G-Secs trading
TDP walkout over Prudential issue

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2004, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line