Financial Daily from THE HINDU group of publications
Thursday, Feb 14, 2002
Money & Banking
Re range-bound; securities rally
MUMBAI: THE rupee closed on Wednesday almost unchanged from the previous levels of 48.6750/68 in a lacklustre forex market.
After opening the day at 48.66/67, the rupee remained range-bound for most of the day, slipping to an intra-day low of 48.69.
Demand and supplies remained evenly matched, as any trickle of dollar supplies into the market were quickly mopped up by State-run banks. A telecom company was reportedly selling dollars substantially in the market, according to forex dealers.
Meanwhile, forwards eased from Tuesday's levels in the six-month premium segment, ending at (5.29 per cent) 5.32 per cent, while the one-year premium remained largely unchanged at 5.12 per cent.
Securities prices gained by nearly a rupee across the board over previous closing levels as markets rallied buoyantly after Tuesday's auction announcement of the 8.07 per cent 2017 paper for Rs 5,000 crore.
The benchmark ten-year yield -- the 11.03 per cent 2012 paper closed at Rs 127.75/85, as against its previous close of Rs 126.80, before the auction announcement. The yield on this paper is at around 7.18 per cent.
Dealers said that prices had rallied, as the auction amount of Rs 5,000 crore was much less than market expectations.
The 11.50 per cent 2011 paper closed at Rs 129.70/80, as against its previous close of Rs 128.80/85.
The yield on this paper is at 7.20 per cent. The 9.85 per cent 2015 paper ended at Rs 121.70/80, as against its previous close of Rs 120.95/121.
Dealers expect the auction on February 14 to be fully subscribed, with market players pegging the price of the auction paper at Rs 108.30 (YTM --7.15 per cent).
In the inter-bank call money market, call rates ended at around 6.50-6.60 per cent, after touching a high of 6.75 per cent.
In the one-day repo auction, the RBI received and accepted seven bids of Rs 5,570 crore at 6.50 per cent.
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