The Hindu Business Line : Rupee loses 6 paise

MUMBAI: On the back of overnight strengthening of the greenback and demand for it in the local currency markets, the rupee lost another 6 paise on Wednesday in its value against the dollar to close at 46.20/21.

The central bank was even seen in the market selling dollars in order to smoothen the dip of the domestic currency in contrast to mopping up of dollars in recent times.

The rupee has lost 9 paise on Tuesday from Monday's levels of 46.05, thereby

The rupee has lost 15 paise in the span of two trading days.

The rupee went as low as 46.39 levels intra-day.

In the forward markets, premia strengthened on RBI intervention and in tandem with the spot movement by 20-30 basis points.

The six months premium closed over 30 basis points higher at 2.65 per cent (2.33 per cent) as the one-year forward gained 20 basis points to end at 2.50 per cent (2.30 per cent).

In the Government securities market, prices were volatile with mutual funds facing redemption pressure and profit-booking by market participants. The long-end papers moved in the 10 paise range throughout the day with traded volumes capped at over Rs 3,900 crore. There was plenty of liquidity in the market despite the auction outgo of Rs 9,000 crore with call rates ruling at the usual 4.75-5 per cent range.

The newly auctioned paper, 6.35 per cent 2020 paper was very actively traded and dropped by 12 paise to close at Rs 103.88 after opening at Rs 104. Other well-traded papers include, the 8.07 per cent 2017 paper, which remained in the Rs 119.55-119.60 range, while the 6.25 per cent 2018 paper opened at Rs 103.10, touched a high of Rs 103.20 and closed at Rs 103.13.

Through the LAF window, considerable amounts were sucked out of the market by the central bank. All 43 bids worth Rs 24,735 crore were accepted at the repo rate of 5 per cent.

Article E-Mail :: Comment :: Syndication

Stories in this Section
Rupee loses 6 paise

NIC meet at Ramoji film city

Public issue news boosts Vijaya Bank

Federal Bank Q1 net rises 115 per cent

SBM, Maruti in pact for car loans

Pension is `too small' for bank chairmen

ICICI Bank gets RBI approval for offshore unit

`Canara Bank equity revamp by year-end'

PNB board meet

Jaswant sets 9% interest on crop loans by banks

Squeeze on spreads testing banks' skills: IOB chief

`Rs 30,000 cr in first tranche of bank buyback likely'

HSBC's credit card offer for Christ College former students

Vijaya Bank to issue equity shares in Sept

States asked not to issue guarantees to co-op banks