• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Our Bureau

Mumbai:

THE rupee closed strongerby a paise on Tuesday at 48.35/3550, as compared to Monday's close of 48.36/3650 in the forex market.

The bias is for a stronger rupee. Supplies of the greenback were seen to be heavy with good inflows through foreign direct investment.

Slack demand was witnessed in a dull forex market, said a forex dealer.

The domestic currency opened at 48.36/37. In the forwards market, the six months premium closed at 3.98 per cent (3.97 per cent) and the twelve months premium closed at 4.04 per cent (4.00 per cent).

"There was firming up in the longer end. There were indications that the Reserve Bank of India were seen buying forward dollars in considerable amounts,'' explained a dealer.

Dealers gesticulate that there is some debt repayments in the months of May, June and July for the apex bank.

The Rs 7,000 crore twin-auction was fully subscribed, with the cut-off at Rs 100.93 for the 7.27 per cent 2013 paper and at Rs 100.72 for the 7.95 per cent 2032 paper.

The cut-off is said to be higher than market expectations, which should see yields falling further.

The markets are expected to react favourably to the auction cut-off on Wednesday, with heightened expectations of a rate cut.

Bond prices were rallying on Tuesday by 7-13 paise for the medium-term papers in the gilts market.

Rate cut expectations combined with the abundant liquidity in the system have kept the yields falling.

The yield of 7.40 per cent 2012 paper fell to 7.08 per cent. It opened at Rs 102.06 and closed at Rs 102.13/14. The 11.50 per cent 2011 paper saw the yield falling to 7.05 per cent with the opening price at Rs 129.45 and closing at Rs 129.52. The 9.39 per cent 2011 paper opened at Rs 114.95 and closed at Rs 115.03. The 9.81 per cent 2013 paper opened at Rs 119.35 and closed at Rs 119.45.

In the inter-bank call money market, the call money closed at 5.70 per cent.

In the one-day repo auction, the RBI received 16 bids worth Rs 24,030 crore, out of which 16 bids worth Rs 21,628 crore were partially accepted at the repo rate of 5.75 per cent.

Send this article to Friends by E-Mail
Comment on this article to BLFeedback@thehindu.co.in

Stories in this Section
Nabard cuts refinance rates

Copyright © 2002, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line