Re slips 20 paise at 39.75/76 vs $
The rupee was extremely volatile on Thursday, following the 717-point dip on the BSE Sensex.
By TNN |
MUMBAI: The rupee was extremely volatile on Thursday, following the 717-point dip on the BSE Sensex. The local currency ended the day at 39.75/76 levels, almost 20 paise lower than the previous close of 39.55 levels on Wednesday.
The rupee had opened the day stronger at 39.45 levels and did rise up to 39.40 during the day. However, the huge crash in the Sensex saw the local currency slip sharply to 39.88 levels later. The past two days saw the rupee dip by more than 1% , from 39.35 levels to 39.88 per dollar. Concerns of capital outflow, along with the stock markets falling have been weighing on traders, according to market sources. Premia on forward contracts inched down; the one-month contract ended the day at 1.22% (1.70%).
The six-month premium also slipped down to 1.09% (1.44%) and the premium on the annual contract ended the day at 0.96% (1.18%). Volumes on the bond market remained low as well, despite the comfortable liquidity conditions. The yield on the 10-year benchmark bond, the 7.99% bond maturing in 2017, ended the day at 7.91%, slipping from Wednesday’s close of 7.93%.
Rates on the inter-bank call market hovered around the 6%-levels. The rates ended the day at 6.05% after transactions worth Rs 11,738 crore were made.
Call rates dipped to a low of 3.75% levels during the day. Repo rates ended at 5.40%, after deals worth Rs 16,961 crore were struck. Rates on the market for collateralised borrowing and lending obligations (CBLO) ended at 5.65%. Transactions worth Rs 44,543 crore were carried out on the CBLO option.
At RBI’s liquidity adjustment facility window (LAF), banks placed bids worth Rs 40,525 crore and the entire amount was mopped up by the central bank.
The rupee had opened the day stronger at 39.45 levels and did rise up to 39.40 during the day. However, the huge crash in the Sensex saw the local currency slip sharply to 39.88 levels later. The past two days saw the rupee dip by more than 1% , from 39.35 levels to 39.88 per dollar. Concerns of capital outflow, along with the stock markets falling have been weighing on traders, according to market sources. Premia on forward contracts inched down; the one-month contract ended the day at 1.22% (1.70%).
The six-month premium also slipped down to 1.09% (1.44%) and the premium on the annual contract ended the day at 0.96% (1.18%). Volumes on the bond market remained low as well, despite the comfortable liquidity conditions. The yield on the 10-year benchmark bond, the 7.99% bond maturing in 2017, ended the day at 7.91%, slipping from Wednesday’s close of 7.93%.
Rates on the inter-bank call market hovered around the 6%-levels. The rates ended the day at 6.05% after transactions worth Rs 11,738 crore were made.
Call rates dipped to a low of 3.75% levels during the day. Repo rates ended at 5.40%, after deals worth Rs 16,961 crore were struck. Rates on the market for collateralised borrowing and lending obligations (CBLO) ended at 5.65%. Transactions worth Rs 44,543 crore were carried out on the CBLO option.
At RBI’s liquidity adjustment facility window (LAF), banks placed bids worth Rs 40,525 crore and the entire amount was mopped up by the central bank.
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