Date:15/10/2004 URL: http://www.thehindubusinessline.com/2004/10/15/stories/2004101501690800.htm

Back Rupee steady; g-secs rally

Our Bureau

MUMBAI: The domestic currency ended at 45.86 against the dollar on Thursday, almost unchanged from Tuesday's closing levels. Financial markets remained closed in Mumbai on Wednesday due to State elections.

After opening at 45.87/88, the rupee inched up to an intra-day high of 45.84. Dealers expect the domestic currency to trade between 45.80 and 45.90 levels on Friday.

Forwards eased marginally, with the six-month premium ending at 2.52 per cent (2.66 per cent) and the one-year premium closing at 2.05 per cent (2.25 per cent).

Bond prices rallied by around 60 paise across maturities in a buoyant Government securities market. Dealers said that the market is upbeat on the view that a hike in interest rates seems unlikely for now.

The 7.37 per cent 2014 paper opened at Rs 103.90 and got dealt up to Rs 104.30, while the 7.4 per cent 2012 opened at Rs 103.55 and got traded up to Rs 103.95. The 7.38 per cent 2015 paper opened at Rs 103.45 and traded up to Rs 104.05.

Call rates hovered at around 4.5 per cent levels in the inter-bank market.

In the CBLO market, 157 transactions were conducted for an amount of Rs 5,599.75 crore in the rate range of 4.26 - 4.65 per cent.

Under the LAF, RBI received and accepted four bids amounting to Rs 270 crore in the seven-day repo at the rate of 4.5 per cent. In the one-day repo, 29 bids were received and accepted, amounting to Rs 7,260 crore at the rate of 4.50 per cent.