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Tuesday, Sep 06, 2005

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Rupee gains 5 paise

Our Bureau

MUMBAI: The rupee strengthened further against the dollar on Monday on the back of a revival in foreign institutional inflows.

The domestic currency opened at 43.80 and touched an intra-day high of 43.7350. It, however, closed at 43.81, up from Friday's level of 43.86/87.

A dealer at a private bank said that FII inflows to the tune of $50 million helped revive the rupee. The price of global crude, which eased to $66.90, also aided the local currency.

Dealers said that the rupee seemed to be tracking the movement of the euro, which ranged between $1.2530 and $1.2585. Trading was largely between inter-bank players, they said.

In the forward market, the 12-month closed at 0.61 per cent (0.5 per cent) and the 6-month closed at 0.52/53 per cent (0.45 per cent).

Profit-booking in bonds: In the bond market, prices fell marginally on account of profit-taking. However, it recovered towards the end of the day. A dealer at a private bank said that with domestic inflation expected to soften further and liquidity at Rs 51,000 crore, the sentiment in the bond market was positive.

The 10.25-16 year-2021 paper opened at Rs 126.48 (7.38 per cent YTM), touched an intra-day low of Rs 126.25 and closed at Rs 126.41 (7.38 per cent YTM). It had closed on Friday at Rs 126.06 (7.42 per cent YTM),

The 7.37-9 year-2014 paper opened at Rs 102.57 (6.97 per cent YTM) and closed at Rs 102.55 (6.97 per cent YTM), higher than Friday's close of Rs 102.42 (6.99 per cent).

The 7.38-10 year-2015 paper was dealt at Rs 102.50 (7.03 per cent YTM), up from Friday's Rs 102.35 (7.05 per cent YTM).

Call rates closed at 4.90-5 per cent. In the one-day reverse repo auction, the RBI received and accepted 50 bids amounting to Rs 51,390 crore.

In the CBLO market, there were 261 trades for Rs 11,750.15 crore in the rate range of 4.60 and 5 per cent.

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