Date:22/07/2005 URL: http://www.thehindubusinessline.com/2005/07/22/stories/2005072202500600.htm

Back Rupee rallies on yuan revaluation

Our Bureau

MUMBAI: The rupee appreciated sharply against the dollar on news of China revaluing its currency.

The domestic currency closed at 43.2025, up from Wednesday's close of 43.52.

The rupee had opened at 43.48/49 and touched a low of 43.5275. It gained 30 paise in the last one hour of trading, said a dealer with a private bank.

In the forward premia market, prices moved down by 4 paise. The 12-month premia closed at 1.26 per cent (1.35 per cent) and the 6-month closed at 1.51 (1.50 per cent).

Bond prices were up marginally. The 7.27 per cent 8-year 2013 paper opened at Rs 101.20 (7.07 per cent YTM) and closed at Rs 101.33/35 (7.05 per cent YTM), up from Wednesday's level of Rs 101.12/15 (7.08 per cent YTM).

The 7.38 per cent 10-year 2015 benchmark paper opened at Rs 101.5055 (7.17 per cent YTM) and closed at Rs 101.65 (7.15 per cent YTM) against the earlier level of Rs 101.4850 (7.17 per cent YTM).

Call rates ended at 5-5.10 per cent (5-5.05 per cent).

In the one-day reverse repo auction, under the Liquidity Adjustment Facility, RBI received and accepted 28 bids amounting to Rs 12,170 crore.

The CBLO market saw 240 trades being put through in the 5.05-5.10 per cent range, amounting to Rs 9.721.60 crore.