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Wednesday, Aug 17, 2005

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Rupee in range; securities weak

Our Bureau

MUMBAI: The rupee gained marginally against the dollar on Tuesday on account of foreign institutional investor inflows.

The domestic currency opened at 43.5250/54. It was, however, range-bound during the day between 43.52-43.55. It ended at 43.53, a shade higher than previous close of 43.54.

A dealer at a private bank said that dollar supplies were more than the demand. The RBI also did not intervene in the market today.

The forward premia market gained with the central bank staying away, said dealers. The 12-month premium closed at 0.96 per cent (0.91 per cent) and 6-month premium at 1.08 per cent (0.95 per cent).

The bond market was dull, as there was no buying support, said dealers. Though the market opened higher , most securities fell by the end of the day, as crude prices went up.

Volumes were also lesser than normal.

The 7.27-8-year 2013 paper opened at Rs 102.12 (6.92 per cent YTM) and ended at Rs 101.93 (6.95 per cent YTM), lower than the earlier level of Rs 102.25 (6.90 per cent YTM).

The 10.25-16-year 2021 paper opened at Rs 125.40 (7.48 per cent YTM) and closed at Rs 125.24 (7.49 per cent), down from the previous level of Rs 125.63 (7.45 per cent YTM).

The 7.38 per cent 10-year benchmark was dealt at Rs 102.05 (7.09 per cent YTM), against the last dealt level of Rs 102.42 (7.03 per cent YTM).

The 7.55-5-year 2010 paper opened at Rs 103.68 (6.63 per cent YTM) and closed at Rs 103.58 (6.65 per cent YTM).

The announcement that the Rs 8,000 crore government securities auction would be held on Thursday came after market hours. This and statements by the Finance Minister that the government will stick to its borrowing programme are expected to bring down bond prices on Wednesday, said a dealer with a private bank.

The call rates were at 5-5.05 per cent (5-5.50 per cent) levels. In the one-day reverse repo auction, the RBI received and accepted 45 bids amounting to Rs 35,680 crore.

In the CBLO market, there were 244 trades for Rs 9,232.80 crore in the rate range of 4.65-4.80 per cent.

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