Financial Daily from THE HINDU group of publications
Thursday, Feb 23, 2006
Financial Daily from THE HINDU group of publications Thursday, Feb 23, 2006 |
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Money & Banking
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Forex Rupee weakens; bonds bearish
MUMBAI: The rupee depreciated against the dollar on Wednesday on the back of dollar demand and in tandem with the fall in the euro. The rupee opened at 44.46/48 and closed at 44.64/65, down from Tuesday's 44.4250. Dealers said month-end demand caused the rupee to edge down. "The demand came from importers as well as due to inter-bank trade. The fact that there was a rise in the domestic stock market muffled the fall." In the forward premia market, the six-month closed at 2.27 per cent (2.42) and the 12-month at 1.81 per cent (1.88). In the bond market, the sentiment was bearish despite the cancellation of the Rs 5,000-crore Government auction earlier this week. Dealers said that despite the cancellation of the auction, there was a crunch in liquidity."Traders are awaiting the announcement of the Government borrowing programme in the Budget. Also, the fact that mid-March will see advance tax outflows to the tune of Rs 25,000 crore is a concern," said a dealer at a private bank. The 8.07 per cent 11-year 2017 paper opened at Rs 105.45 (7.33 per cent YTM) and closed at Rs 105.23 (7.36 per cent YTM), lower than Tuesday's Rs 105.44 (7.33 per cent YTM). The 7.37 per cent eight-year 2014 paper opened at Rs 100.84 (7.22 per cent YTM) and closed at Rs 100.41 (7.30 per cent YTM). The call rate closed at 6.9 per cent (7-7.10 per cent). In the first one-day auction, the Reserve Bank of India did not receive any bids in the repo auction, but received and accepted 28 bids for Rs 14,525 crore in reverse repo. In the second auction, it received and accepted two bids for Rs 50 crore and nine bids for Rs 3,455 crore. In the CBLO market, there were 327 trades for Rs 20,187.3 crore in the rate range of 6.43-7 per cent. - - Our Bureau
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