Financial Daily from THE HINDU group of publications
Wednesday, Jul 10, 2002
Financial Daily from THE HINDU group of publications Wednesday, Jul 10, 2002 |
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Money & Banking
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Forex Re firms up; gilts steady Our Bureau
Mumbai: THE rupee closed firmer on Tuesday by around 3 paise at 48.79/7950 per dollar in a lacklustre forex market as compared to Monday's close of 48.8150/8200. Forex dealers said, that the market was largely devoid of any dollar demand and State-run banks continued to play the market both ways, i.e., selling dollars and then mopping up the greenbacks when the currency started to strengthen. "The apex bank wants the rupee to maintain a range and nationalised banks are keeping the currency supported at these levels due to this," said a forex dealer with a private sector bank. Dealers said, as long as international currency majors continue to strengthen against the dollar, the rupee is expected to remain stable. Meanwhile, forwards continued to soften with the six-month premium ending at 4.46 per cent (4.61 per cent) and the premium for one-year ending at 4.67 per cent (4.77 per cent). Sentiment in the bond market was positive as active trading resulted in the illiquid stocks gaining by around 40-50 paise over previous levels. Activities in the other papers were also high, pushing prices up. Profit-booking later brought the prices down to opening levels. Dealers said that easy liquidity conditions and the absence of an open market operation (OMO) accounted for the positive sentiment in the market. The 7.40 per cent 2012 paper, which had closed at Rs 100.45/55 previously, touched a high of Rs 100.80, but later fell to Rs 100.40/45 on profit-booking. The 7.55 per cent 2010 paper closed at around Rs 102 after opening at levels of Rs 101.90. The 11.50 per cent 2011 paper, which had closed at around Rs 126.80 previously, touched a high of Rs 127.20 before closing at Rs 127.10. Call rates closed lower on easy liquidity conditions at around 5.60 per cent after trading at around 5.70-5.80 per cent throughout the day. In the one-day repo auction, the RBI received 15 bids for Rs 22,860 crore and partially accepted the same for Rs 20,574 crore at 5.75 per cent.
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