Financial Daily from THE HINDU group of publications
Tuesday, Aug 12, 2003
Financial Daily from THE HINDU group of publications Tuesday, Aug 12, 2003 |
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Money & Banking
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Forex Rupee breaches 46 despite RBI buying Our Bureau
MUMBAI: The rupee once again breached the 46 mark on Monday with heavy FII inflow, to end the day at 45.95/96 against the dollar, up from Friday's close of 46.02/03. It had closed at 45.95/96 levels on Thursday. Foreign banks were seen selling in the market while the Reserve Bank of India was missing in the early half of the day. The expectation had been that the central bank would support the 46 mark for quite sometime; however the expectations were belied. RBI came in to buy dollars by 2 p.m. and held the rupee steady at 45.95/96 levels till close, said a dealer in a private bank. In the forwards market, there was good amount of trading with exporters seen selling heavily and some covering by importers too. The six months forward closed at 2.01 per cent (2.08 per cent) and the one-year closed at 1.91 per cent (2.05 per cent). In the government securities market, with fears of an open market operation in the air, prices were range-bound. However, traded volumes crossed Rs 6,000 crore. The 9.81 per cent 2013 paper opened at Rs 132.10 and closed at Rs 132.05 and a corresponding yield of 5.5288 and the 8.07 per cent 2017 paper opened at Rs 121.30, touched a high of Rs 121.35 and ended at Rs 121.25. The 27-week low inflation figures of 4.09 per cent did create a rally in the markets, said dealers, though players were any way expecting lower inflation figure and the news had been discounted already. Call rates were hovering 4.90-5 per cent in the inter-bank call money market with abundant liquidity in the system . Through the liquidity adjustment facility window, the central bank sucked away liquidity worth Rs 17,795 crore through 43 bids for the one-day repo and bids worth Rs 20,830 crore through 15 bids for the 14-day repo at the repo rate of 5 per cent.
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