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Rupee gains seven paise against dollar in dull trade

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Agencies Mumbai
Last Updated : Feb 24 2014 | 11:56 PM IST
In listless trade on Monday, the rupee gained seven paise to end the day at 62.07 against the dollar, amid a rise in stock markets on signs of continued capital inflows. A weakness in the US currency in overseas markets and mild selling of dollar by exporters helped the rupee sentiment, a forex dealer said. At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced a tad better at 62.11 a dollar from last weekend's close of 62.13.

The local currency traded narrow before concluding at 62.06, a net rise of seven paise from last Friday's level.

Govt bonds slide, call rates remain firm
Government bonds' prices fell sharply following heavy selling pressure from banks and companies amid lack of demand from investors. Overnight call money rates continued to rule firm on the back of good demand from borrowing banks amid tight liquidity conditions in the banking system. The 8.83 per cent 10-year benchmark bond maturing in 2023 dropped further to Rs 99.6225 from Rs 100.20, while its yield rose to 8.89 per cent from 8.80 per cent last Friday.

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The 8.12 per cent government security maturing in 2020 declined to Rs 94.45 from Rs 94.87 previously, while yield spurted to 9.23 per cent from 9.15 per cent.

The overnight call money rate ended higher at 7.70 per cent from 7.00 per cent previously after moving in a narrow range of 8.10 per cent and 7.00 per cent earlier.

Stors chose to cheer the easing headline number, sending yields down to 8.76 per cent in early trades. However, traders continued to remain jittery ahead of the borrowing numbers for the fiscal year beginning April, which Finance Minister Palaniappan Chidambaram will unveil on Monday.

The 8.12 per cent government security maturing in 2020 declined to Rs 95.2450 from Rs 95.55, while its yield moved-up to 9.07 per cent from 9.00 per cent. The 8.28 per cent government security maturing in 2027 also dipped to Rs 93.15 from Rs 93.62, while its yield gained to 9.17 per cent from 9.11 per cent. The 7.28 per cent government security maturing in 2019, the 8.24 per cent government security maturing in 2027 and the 7.16 per cent government security maturing in 2023, were also quoted down at Rs 93.24, Rs 92.82 and Rs 87.85, respectively.

The 8.28 per cent government security maturing in 2027 shot-up to Rs 93.62 from Rs 93.3975, while its yield slipped to 9.11 per cent from 9.14 per cent. The 8.12 per cent government security maturing in 2020 also moved-up to Rs 95.55 from Rs 95.45, while its yield edged-down to 9.00 per cent from 9.02 per cent.

The overnight call money rate ended higher at 9.15 per cent from 8.050 last Friday, it moved in a range of 9.25 per cent and 8.40 per cent.

The 7.28 per cent government security maturing in 2019, the 8.24 per cent government security maturing in 2027 and the 8.32 per cent government security maturing in 2032, were also quoted up at Rs 93.5150, Rs 93.3350 and Rs 92.85, respectively.

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First Published: Feb 24 2014 | 11:54 PM IST

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