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The rupee on Thursday depreciated by four paise to close at 44.36/37 against the US currency following late dollar demand despite firm equities amid increased capital inflows and a weak dollar overseas. Dealers said that late dollar buying by importers, mainly oil refiners, weighed heavy on the rupee. FIIs injected $566.26 million in equities on April 19 and 20. Alpari Forex (India) CEO, Mr Pramit Brahmbhatt, said, “The dollar index went down to three-year low, as it weakened against major currencies such as the euro and the pound. This had a positive impact on Indian equities and helped the rupee to strengthen against the greenback, which could further extend its gain to Rs 44 levels.” The rupee premium for the forward dollar closed further weak on sustained receivings by exporters. The benchmark six-month forward dollar premium payable in September finished lower at 142-143 paise from 144-146 paise on Wednesday. The RBI has fixed the reference rate for the dollar at Rs 44.30 and the euro at Rs 64.69.
Bonds end mixed
The government bond closed mixed on alternate bouts of buying and selling. The 8.08 per cent government security maturing in 2022 shot up to Rs 98.84 from Rs 98.69 on Wednesday, while its yield moved down to 8.24 per cent from 8.26 per cent. The 8.13 per cent government security maturing in 2022 hardened to Rs 99.29 from Rs 99.14, while its yield eased to 8.23 per cent from 8.25 per cent and the 7.59 per cent government security maturing in 2016 also quoted higher at Rs 97.68 from Rs 97.65 previously. However, the 7.80 per cent government security maturing in 2021 dropped to Rs 98.27 from Rs 98.40, while its yield moved up to 8.06 per cent from 8.04 per cent.
Call rate recovers
Call rates edged up to end at 6.20 per cent at the overnight call money market here on Thursday due to fresh demand from borrowing banks. They moved in a range of 6.25 per cent and 6 per cent. The RBI, under the Liquidity Adjustment Facility, purchased securities worth Rs 3,730 crore from six bids at the four-days repo auction at a fixed rate of 6.75 per cent.
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