The Hindu Business Line : Rupee weakens as oil firms step up dollar-buying

THE rupee further weakened against the US currency on Wednesday as oil companies increased dollar purchases and the market recorded a slowdown in foreign institutional inflows.

The rupee opened at 43.68/6943, lower than Tuesday's closing at 43.66/6650. It touched an intra day low of 43.7850, but inched up to close at 43.73/74.

At 43.78, the Reserve Bank of India is said to have intervened, with nationalised banks selling dollars and causing the rupee to slightly recoup its losses. A dealer at a private bank said that globally, the dollar appreciated against other Asian currencies. In the forward premia market, the 12-month ended at 0.67 per cent (0.75) and the 6-month closed at 0.73 per cent (0.71).

Bonds range-bound

The bond market's sentiment was bearish and volumes were thin on the heels of the auction announcement on Tuesday.

The prices were range-bound and crept up by 10 paise as Life Insurance Corporation bought securities in the market.

In the Rs 6,000-crore auction on Thursday, foreign banks and State run banks are expected to buy since the 11.9 government stock 2007 is a short-term paper.

The 10.25-16 year-2021 paper opened at Rs 125.36 (7.48 per cent YTM) and closed at Rs 125.45 (7.47 per cent YTM), higher than Tuesday's close at Rs 125.36 (7.48 per cent YTM).

The 7.37-9 year-2014 paper opened at Rs 101.98 (7.06 per cent YTM) and closed at Rs 102.03 (7.05 per cent YTM), the same level as Tuesday's Rs 102.03 (7.05 per cent YTM).

The 7.38-10 year-2015 benchmark paper was dealt at Rs 102.10 (7.08 per cent YTM), lower than Tuesday's closing at Rs 102.16 (7.07 per cent YTM).

The call rate closed at 5-5.05 per cent (4.90-5). In the one-day reverse repo auction, the RBI received and accepted 43 bids amounting to Rs 35,030 crore. In the CBLO market, there were 194 trades for Rs 7,348.20 crore in the rate range of 4.85-5 per cent.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Rupee slides to 3-mth low on fall in FII inflow

Yuan revaluation — No big advantage for India

Rupee weakens as oil firms step up dollar-buying

TCS centre for insurance practice

Bharti ties up with AXA for life insurance venture

ECGC settles claims on insolvency of large importer

Bank employees seek more credit for farm sector

Gecis, Liberata tie up for UK pension market