The Hindu Business Line : Rupee tad higher; securities weak

The Indian unit opened firm at 43.70/72, and appreciated to 43.64 as the euro and the yen made modest gains against the dollar, said a dealer with a private bank.

Later, public sector banks entered the market and bought dollars, to leave the rupee at 43.76 levels at the finish.

According to a dealer in a public sector bank, the rupee gained initially on expectations of large FII inflows in the coming days.

"The market was rife with speculation of large FII inflows, which lifted the rupee in early trading. However, it could not hold on to these gains as dollar-buying drove the rupee down later in the day," said the dealer with the public sector bank.

The six-month forward closed at 1.66 per cent and the 1-year paper at 1.40 per cent.

The debt market opened the week on a dull note in the absence of fresh triggers.The benchmark 7.38 per cent paper closed at 6.49 per cent after opening at 6.46 per cent. It had closed the previous week at 6.45 per cent levels.

According to a dealer with a public sector bank, prices dropped by 25-30 paise on subdued trading interest. He expected the market to remain sidelined ahead of the Federal Reserve Chairman, Mr Alan Greenspan's address later in the week. In the CBLO market, 117 trades were put through for an aggregate of Rs 3,524.90 crore in the rate range of 4.60-4.85 per cent.

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