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Friday, Sep 09, 2005

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Rupee ends firm; bond prices fall

Our Bureau

MUMBAI: The rupee ended firmer against the dollar on Thursday as the domestic currency was supported by foreign institutional inflows.

The rupee opened at 43.86 and touched an intra-day high of 43.8050. It closed at 43.81, up from Tuesday's 43.89/90.

The price of global crude having eased to $64 also aided the rupee. In the forward premia market, the 12-month closed at 0.6 per cent (0.55) and the 6 month ended at 0.53 per cent (0.42).

In the bond market, prices fell marginally by 5-10 paise. Dealers said that the auction of the 5.69 Government stock 2018 and the new 7.40 government stock 2035 kept the market uncertain. The 10.25-16 year-2021 paper opened at Rs 126.53 (7.37 per cent YTM) and closed at Rs 126.50 (7.37 per cent YTM), largely unchanged from Tuesday's Rs 126.49 (7.37 per cent). The 7.37-9 year-2014 paper opened at Rs 102.62 (6.96 per cent YTM) and closed at Rs 102.55 (6.97 per cent YTM), lower than Tuesday's Rs 102.58 per cent (6.96 per cent YTM). The 7.38-10 year-2015 benchmark paper was dealt at Rs 102.55 (7.02 per cent YTM).

The call rate closed at 4.90-5.05 (4.90-5). In the one-day reverse repo auction, thwe Reserve Bankof India received and accepted 47 bids amounting to Rs 49,090 crore. In the CBLO market, there were 220 trades for Rs 13,045.10 crore in the rate range of 4.25-5 per cent.

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