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Thursday, Mar 25, 2004

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Money & Banking - Forex


Rupee up 12 paise

Our Bureau

MUMBAI: The rupee's rise on Wednesday was more moderate than Tuesday as it ended at 44.75 against the dollar, up 12 paise from the previous close.

The central bank was said to have been out of the market also as dollars rained in by FII inflows and exporter receivables. On Monday, the rupee breached the 45.00 mark with the RBI showing no fuss over the rapid appreciation.

Good dollar supplies were witnessed and there was no corporate demand leading to rise in the rupee's value, said the dealer. The currency opened the day at 44.83 and appreciated consistently from that level.

The forward premia on the dollar moved up. Exporters, being mostly over-covered, cancelled forward contracts to book profits leading to rise in the premia. The six months forward closed at 0.65 per cent (0.58 per cent) and the one-year forward closed at 0.61 per cent (0.60 per cent).

In the Government securities market, prices first dipped and but later gained. Net prices would have fallen by 5-7 paise on the 17-year segment. Foreign banks, bond houses and even mutual funds were out to buy G-secs . Mutual funds had suffered from redemption pressure in the bond markets on Tuesday.

The 8.07 per cent 2017 paper opened at Rs 123.80 and closed at Rs 123.85. The five-year benchmark, the 11.99 per cent 2009 paper opened at Rs 131.85 and closed lower at Rs 131.81.

Call rates were steady and surplus funds worth over Rs 55,000 crore were absorbed by the central bank through the one-day repo at the repo rate of 4.5 per cent.

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