Financial Daily from THE HINDU group of publications
Friday, Oct 14, 2005
Financial Daily from THE HINDU group of publications Friday, Oct 14, 2005 |
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Money & Banking
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Forex Rupee weakens; bonds lacklustre Our Bureau
MUMBAI: The rupee further dipped against the dollar on Thursday tracking a fall in the stock market and fears of FII outflows sparked heavy demand. The rupee opened at 44.90/91 and fell further to 44.96/97. It then touched an intra-day high of 44.87/88 before finally closing lower at 44.9450/9550. On Tuesday, the domestic currency had closed at 44.86/87. Dealers said that there was robust dollar demand from importers. "The buying has been mainly to cover positions in the near term," said a dealer. However, the central bank is believed to have stepped in, with PSU banks selling dollars at 44.95 levels. This caused the rupee to appreciate slightly during the day. The euro, which was weaker at $1.975, also formed the view of a stronger dollar. In the forward market, the 12-month premium closed at 0.55 per cent while the six-month premium ended at 0.63 per cent. In the bond market, prices were flat as dealers held light positions ahead of the half-yearly review of the Credit Policy. Traded volumes were thin at Rs 870 crore. Dealers said that the prices opened weak and closed at the same level or slightly higher. "The rise in the US yields as well as price of global crude edging up to $64.11 weighed heavy on the bond marker," said a dealer. The 10.25-16-year-2021 paper, which is currently the most active, opened at Rs 125.20 (7.49 per cent YTM). It moved up to Rs 125.37 before closing at Rs 125.20 (7.49 per cent YTM). The 8.07-9-year-2014 paper opened at Rs 106.16 (7.258 per cent YTM) and closed at Rs 102.26 (7.24 per cent YTM). The 7.38-10-year-2015 benchmark paper opened at Rs 101.54 (7.158 per cent YTM) and closed Rs 101.60 (7.15 per cent YTM). The call rate closed at 5-5.05 per cent. In the one-day reverse repo auction, the Reserve Bank of India received and accepted 31 bids amounting to Rs 18,590 crore. In the CBLO market, there were 279 trades for Rs 11,667.65 crore in the rate range of 4.78-5.25 per cent.
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