Financial Daily from THE HINDU group of publications
Saturday, Apr 30, 2005
Financial Daily from THE HINDU group of publications Saturday, Apr 30, 2005 |
|
|
|
|
|
Money & Banking
-
Forex Rupee up 15 paise; gilts lacklustre Our Bureau
MUMBAI: The rupee rallied against the dollar on Friday ending the day at 43.54/55 fuelled by speculation about the revaluation of the Chinese yuan and heavy selling by banks and corporates. With the trend towards higher inflation and hardening interest rates as well as higher oil prices, dealers anticipated that the RBI would not intervene in the rupee's appreciation to prevent import bills from rising. The rupee had closed at 43.7050/7150 on Thursday. Dealers said that with the speculative stream on the revaluation of the Chinese yuan, the Japanese yen worked as a proxy since there is not much trading in the yuan. In the forward premia market, there was a fall as the 12-month premium closed at 1.5 per cent (1.62/63) and the 6-month premium closed at 1.75 per cent (1.85). The bond market was lacklustre after Thursday's fall of nearly a rupee. The yields increased by 1 or 2 basis points and the prices fell by 10 to 15 paise. Dealers said that trade was thin ahead of the Rs 8,000-crore auction on May 3. The inflation data at 5.64 per cent up from last week's 5.48 per cent also did not have a much of an impact. The currently active 8.07-12-year-2017 bond was largely flat and closed at Rs 104.06 (7.54 per cent YTM), down from Thursday's closing at Rs 104.10 (7.53 per cent YTM). The 7.38-10-year-2015 benchmark paper closed at Rs 101.33 (7.19 per cent YTM), up from Thursday's close at Rs 101.20 (7.21 per cent YTM). Call rates closed lower at 4 per cent as there were few trades. In the one-day reverse repo, under the liquidity adjustment facility, the RBI received and accepted 41 bids amounting to Rs 27,650 crore. The CBLO market saw 208 trades aggregating Rs 6,970.85 crore, in the rate-range of 1-4.8 per cent.
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2005, 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
|