Financial Daily from THE HINDU group of publications
Wednesday, Mar 30, 2005
Financial Daily from THE HINDU group of publications Wednesday, Mar 30, 2005 |
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Money & Banking
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Forex Rupee down 3 paise; securities bearish Our Bureau
MUMBAI: The rupee hit a five-week low and ended at 43.81/82 against the dollar on Tuesday. Call rates dipped to 2.5-3 per cent on excess liquidity. The rupee had closed at 43.78 on Monday. Dealers said the rupee, which opened at 43.78/79, hit an intra-day high of 43.77/78 before moving down. "The BSE Sensex shedding 144 points as well as the fact that the dollar has been strengthening against all major foreign currencies have resulted in the further depreciation of the rupee," said the treasury head of a private bank. Call rates opened at 4.75 per cent, but moved down to 2.5-3 per cent before edging up again. Dealers said that this is typically the case at the end of the fiscal year when the bank's deposits are volatile. The forward premia market fell with the 6-month premium closing at 1.66 per cent (1.73-1.75) and the 12-month premium closing at 1.42 per cent (1.44-1.46). Bond prices fell by around 40 paise on the heels of the announcement of the auction calendar. The 7.38 per cent 10-year benchmark paper closed at Rs 105 (6.66 per cent YTM) on Tuesday as against Monday's close of Rs 105.42 (6.65 per cent YTM). It had opened at Rs 105.30 (6.68 per cent YTM). A dealer at a private bank said, "The auction calendar, which was released on Monday, has announced Rs 83,000 crore as debt sales in the next six months. It is higher than what we expected. This will make way for new supplies and as a result yields will go up as they have today". In the one-day reverse repo under the Liquidity Adjustment Facility, RBI received and accepted 48 bids amounting to Rs 33,965 crore. In the CBLO market, 190 trades aggregating Rs 7,112.15 crore was put through in the rate range of 1-5 per cent.
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