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Market Eye
| Rupee ends weak; bonds trade firm | 17/07/2009 11:37:46 | MUMBAI: The Indian rupee ended marginally lower by three paise to 48.66/68 against
the dollar, even after a strong start, on renewed demand
for the US currency from
banks and firms on the back of rise in overseas markets.
In quiet trade at the inter-bank foreign exchange market, the domestic currency resumed firm at 48.50/51 a dollar against its last close of 48.63/64 a dollar and later rose to 48.45 before ending at 48.66/68 a dollar. Dealers said the rupee lost early gains in spite of a fresh rally in local stocks raising expectations of fresh inflows of foreign funds.
Foreign institutional investors, which have been negative in the initial two weeks of the month, turned net buyers in equity on July 14-15. The dollar gained against other major currencies in London ahead of some key US corporates earnings.
Government bond prices firmed up while its yield declined due to fresh demand from banks and corporates. The call rates ruled steady at 3.25% on the overnight call money market in the absence of market-moving factors.
The 7.94% government security maturing in 2021 shot up to Rs 105.92 from Rs 105.40 previously while its yield moved down to 7.19% from 7.25%. The 8.20% government security maturing in 2022 hardened to Rs 106.8 from Rs 106.5 while its yield eased to 7.36% from 7.4%.
The Reserve Bank of India under the liquidity adjustment facility (LAF) mopped up Rs 1,28,270 crore from 46 bids at one day reverse repo auction at the rate of 3.25% | Market
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