Financial Daily from THE HINDU group of publications
Friday, Jan 11, 2002

News
Features
Stocks
Port Info
Archives

Group Sites

Money & Banking - Forex


Re at new low; gilts decline

Our Bureau

MUMBAI: THE rupee closed at a new low on Thursday at 48.3450/3650 per dollar in a forex market driven by apprehensions that the ``overvalued'' rupee may be allowed to find its own level.

The rupee ended around five paise weaker compared to the previous close of 48.31/3150.

After opening at 48.3450/3650 per dollar, the currency fell to an intra-day low at 48.44 following consistent and substantial mopping up of greenbacks by a Sate run bank, possibly at the behest of the RBI.

`` A section of the market men feel that the rupee is overvalued by around 2 per cent. Export growth has also been negative. Therefore, the Apex bank will be in favour of a weaker rupee", said a forex dealer with a private sector bank.

The rupee has been weakening steadily over the past week and is likely to fall further if the current uncertainty on the border continues. However, the RBI is expected to step in to prevent any steep fall.

Meanwhile, forwards remained relatively flat with the six-month premium ending at 6.20 per cent (6.20 per cent) and the premium for one year ending at 5.93 per cent (5.92 per cent).

Securities prices dipped by 5-10 paise over its previous closing levels, tracking a weak spot rupee in a largely quiet securities market.

Dealers said that the markets would continue to remain lacklustre until the Rs 5,000 crore auction on January 14. ``Market players are still very uncertain as to the direction to take and hence the limited activity in the bond market. The yield on this auction will help the market to decide its next course,'' said one dealer in a private sector bank.

The 11.03 per cent 2012 paper which had closed at Rs 121.65/75 previously, ended at Rs 121.58/61 today and the 11.50 per cent 2011 paper today closed at Rs 124.25/30 as against its previous close of Rs 124.35/40. The 9.85 per cent 2015 paper ended at Rs 114.60/65 as against its previous closing of Rs 114.60.

In the inter-bank call money market, the call rates closed at 6.40-6.60 per cent.

In the one-day repo auction, the RBI received and accepted bids of Rs 8,400 crore at 6.50 per cent.

Send this article to Friends by E-Mail

Stories in this Section
Re at new low; gilts decline


i-flex-ebz Online software for co-ops
J&K Bank Q3 net up 41 pc
LIC call centre set to dial Mumbai
Birla Sun Life social development plan
General insurers' body rejects VRS for officers
Banks told to shift gains on gilts to reserve a/c
ICICI Bank unveils eCheque for funds transfer
BNP Paribas online payment service
SBI video conferencing network
FIs open to divesting MRL stake in favour of Modis
Fitch bearish about IDBI prospects
Gujarat Ambuja issue gets `AAA' rating
`Ask banks to remit tax on term deposit interest'
Dubai hopes to leverage Fund-Bank meet


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | Home |

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