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Thursday, Oct 20, 2005


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Money & Banking - Forex

Rupee volatile; securities weak

Our Bureau

MUMBAI: The forex market was volatile on Wednesday with the rupee tracking the movement of the dollar in the overseas markets.

The rupee opened at 45.30/31, touched a low of 45.41 but recovered to close at 45.16, almost unchanged from Tuesday's close of 45.16/17. "There was suspected intervention by the Reserve Bank of India at lower levels," said a dealer with a private bank.

The forward premia market slipped in the earlier part of trade, but recovered later. The six-month premium touched a low of 0.37 per cent but closed at 0.54 per cent (0.43 per cent). The 12-month premium touched a low of 0.38 per cent. It closed at 0.49 per cent (0.43 per cent).

Bond prices fell as they tracked the forex and equity markets. The bond market also saw low volumes, as dealers were not taking positions ahead of the Credit Policy.

The 7.37 per cent 9 year-2014 paper opened weak at Rs 102.03 (7.05 per cent YTM) and ended at Rs 101.95 (7.06 per cent YTM), lower than Tuesday's close of Rs 102.05 (7.04 per cent YTM).

The 10.25 per cent 16 year-2021 paper opened at Rs 125.10 (7.49 per cent YTM) and closed at Rs 124.98 (7.51 per cent YTM), down from the earlier level of Rs 125.08 (7.50 per cent YTM).

Call rates opened at 5 per cent and closed at 5-5.10 per cent (5-5.05 per cent). Liquidity improved slightly as the RBI received and accepted 28 bids amounting to Rs 15,605 crore in the one-day reverse repo auction. In the CBLO market, there were 243 trades for Rs 14,167.25 crore in the rate range of 4.98-5.07 per cent.

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