Financial Daily from THE HINDU group of publications
Thursday, May 05, 2005
Financial Daily from THE HINDU group of publications Thursday, May 05, 2005 |
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Money & Banking
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Forex Rupee firms up; securities rise Our Bureau
MUMBAI: The rupee firmed up against the dollar on Wednesday on speculations about the revaluation of the Chinese yuan as well as expectations of `measured' further hikes in the US interest rate. The rupee opened stronger at 43.54 against the greenback against Tuesday's close of 43.69. The domestic currency moved in the range of 43.52-43.54 and ended at 43.48. The forward premia was lower as the bond prices rallied. The 12-month premium closed at 1.32 per cent (1.45 per cent) and the 6-month premium ended at 1.49 per cent (1.70 per cent). Dealers said exporters were hedging their one-year requirement. Bond prices rose as a `feel good factor' over Tuesday's successful auction seeped in and the Federal Open Market Committee meeting did not throw up any surprises. A dealer at a private bank said, "The Rs 6,000-crore auction of the 7.55 per cent-5 year-2010 paper received a bid of Rs 21,000 crore. This goes to show that in spite of a bearish market and hardening interest rates, there is confidence that it will do well". Bond prices opened higher with the 7.55 per cent-5 year-2010 paper opening at Rs 102.80/85 (6.88 per cent YTM) against Tuesday's close of Rs 102.65 (6.92 per cent YTM). The paper saw a high of Rs 102.90 (6.85 per cent YTM) and ended at the same level as the opening. The currently active 8.07 per cent - 12 year-2017 security opened at Rs 104.80/85 (7.46 per cent YTM) against Tuesday's closing of Rs 104.50. The paper ended at Rs 104.77 (7.45 per cent YTM). The 7.38 per cent-10 year-2015 paper was traded at Rs 101.15 (7.218 per cent YTM) against Tuesday's close of Rs 100.90 (7.25 per cent YTM) Call rates were steady at 5 per cent. In the one-day reverse repo under the Liquidity Adjustment Facility, RBI received and accepted 43 bids amounting to Rs 27,480 crore. The CBLO market saw 166 trades aggregating Rs 7,114.05 crore in the rate range of 4.80 to 4.95 per cent.
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