Financial Daily from THE HINDU group of publications
Tuesday, Jun 21, 2005
Financial Daily from THE HINDU group of publications Tuesday, Jun 21, 2005 |
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Money & Banking
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Forex Rupee sheds gains; securities rise Our Bureau
MUMBAI: The rupee opened higher against the dollar on Monday but lost its gains by the end of the session on account of the hike in oil prices. The domestic currency, which opened at 43.50/5150, closed at 43.5725/5825 against Friday's level of 43.55/56, said dealers. A forex dealer with a public sector bank said there was good dollar buying by oil companies. . The forward premia was dull, with the 6-month premium closing at 1.35 per cent (1.28 per cent) and the 12-month premium ending at 1.23 per cent (1.20 per cent). The bond market was in a positive zone on account of better inflation figures and lesser than expected rise in retail oil prices, said dealers. However, the market was cautious, ahead of the announcement of a Rs 5,000-crore auction. A dealer with a private bank said, "The market opened weak due to rise in crude price in the global markets and on expectation that retail price hike was likely to be around Rs 5. But when the Petroleum Ministry announced the hike of Rs 2-2.50, there was bargain hunting and bond prices went up by 30-50 paise. The market can absorb the oil price hike because of positive inflation numbers." The 7.55 per cent 5-year 2010 paper opened at Rs 103.55 (6.69 per cent YTM) and closed at Rs 103.78 (6.99 per cent), up from Friday's close of Rs 103.65/69 (6.66 per cent YTM). The 7.38 per cent 10-year 2015 benchmark paper was dealt at Rs 103.30 (6.92 per cent YTM) against Friday's level of Rs 103.20/30 (6.94 per cent YTM). The dealer said the market may be slightly weak on Tuesday as the RBI announced, post-market hours, the auction of the 7.49 per cent 2017 paper on Thursday. The call rates closed at 5 per cent (5.05 per cent). In the one-day reverse repo auction, under the liquidity adjustment facility, the RBI received and accepted 25 bids amounting to Rs 8,305 crore. The CBLO market saw 157 trades being put through in the rate range of 4.80-5 per cent aggregating Rs 6,559 crore.
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