Financial Daily from THE HINDU group of publications
Tuesday, Oct 21, 2003
Financial Daily from THE HINDU group of publications Tuesday, Oct 21, 2003 |
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Money & Banking
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Forex Rupee closes steady; bond volumes surge Our Bureau
MUMBAI: The rupee on Monday closed at similar levels to that of Friday's after dips intra-day. The domestic currency ended the day at 45.35/36 against the dollar after dropping to 45.43 on dollar demand and lower supplies. According to dealers, the central bank was seen both buying and selling dollars to keep volatility in the currency under check. "There was less of dollar supply on Monday following the new cap imposed on NRE deposit rates by the central bank on Saturday.'' However, there were inflows by way of FIIs and regular trade flows. The high for the day was seen at 45.33 after opening at 45.34/35. In the forwards market, contracts up to six months were in discount. The six months contract closed the day at - 0.2 per cent (0.09 per cent) and the one-year closed at 0.1 per cent (0.22 per cent). In the debt market, it was a day of technical hassle with the RBI uploading a new version of the Negotiated Dealing System, the RBI-administered reporting system. Deals were struck only till 12:30 pm after which market participants were busy making entries into the system, which started functioning phase by phase. The Government securities prices fell by 50-90 paise following the introduction of the 28-day repo facility by the apex bank on Saturday only to revive later. Expectations of a rate cut kept traders in high spirits and traded volumes were as high as Rs 4,500 crore although it was practically a half-day. Through the 28-day LAF, the apex bank absorbed liquidity worth only Rs 1,200 crore and through the one-day repo Rs 8,000 crore at the repo rate of 4.5 per cent. Some indicative papers were the 7.46 per cent 2017 paper, which dropped to Rs 120.35 and closed at Rs 120.85 down from Saturday's close of Rs 121.10. The 10-year benchmark, the 7.27 per cent 2013 ended at a yield of 5 per cent and a price of Rs 117.45.
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