Financial Daily from THE HINDU group of publications
Friday, Dec 13, 2002
Money & Banking
Re loses overnight gains
Mumbai: THE rupee lost almost 5 paise to close at 48.19/20 against the dollar on Thursday as compared to Wednesday's close of 48.1450/1550.
The gain in the currency observed on Wednesday, taking it to a one-year high was due to lack of RBI's intervention. The gain was nullified on Thursday, due to the same reason in a volatile forex market.
The mopping up of dollars by the State-run banks saw the rupee weaken to as low as 48.2350. The currency opened at 48.16, which was also the intra-day high.
There was much buying and selling in the market and the currency moved in a wide range of 7 paise, said the forex head in a nationalised bank.
The central bank's strategy seems to be keep the markets guessing and on its toes by intermittent spells of intervention, contend dealers.
In the forward market, the premia fell due to selling of forwards by exporters.
The six months premium fell to close at 3.82 per cent (3.95 per cent) and the one-year closed at 3.51 per cent (3.65 per cent).
G-sec prices moved up by 20-30 paise across the board in the debt markets.
"Now that there is no more uncertainty over the T-bill cut-off which came on Wednesday, the sentiment is bullish,'' said the chief dealer in a private bank.
The ten-year benchmark, 7.40 per cent 2012 paper opened at Rs 106.95/107.00 and closed at Rs 107.18 with a yield of 6.37 per cent.
On the longer end, the 8.07 per cent 2017 paper opened at Rs 112.15/20 and closed higher at Rs 112.45/50.
The peaceful conduction and the high voter turnout at the Gujarat elections was a positive factor favouring prices, said a dealer.
In the inter-bank call money market, the call rates closed at 5.50 per cent.
In the one-day repo, the RBI received 17 bids worth Rs 4,360 crore, all of which was accepted at the repo rate of 5.50 per cent.
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