Rupee ends flat at 39.84/$
Both the bond and forex markets saw extremely dull movements on Monday.
By TNN |
MUMBAI: Both the bond and forex markets saw extremely dull movements on Monday. While the rupee moved up by just one paise against the dollar, bond yields ended flat compared with their previous closing levels.
The local currency ended the day at 39.84 levels per dollar, despite having opened much stronger at 39.75 levels. This was largely due to consistent intervention from the central bank, as large state-owned banks were seen purchasing dollars throughout the day. When the rupee started moving towards its intra-day high of 39.72 levels, the central bank stepped in to intervene aggressively.
On Friday, last week, the rupee had closed at 39.85 levels. Also, the dollar, which had lost heavily against the euro and the pound sterling, saw some correction on Monday, due to which it ended up stronger against these currencies.
Yields on forward contracts dipped sharply as the yield on the one-month contract closed at 0.32% (0.56%). The yield on the six-month contract ended the day at 0.68% (0.77%) and that on the one-year contract ended at 0.85% (0.95%).
On Friday, after market closing hours, RBI announced an auction of bonds under the market stabilisation route for Rs 7,000 crore. This made dealers in the government bond market extremely wary.
The yield on the benchmark paper, the 7.99% bond maturing in 2017, ended at 7.90%, unchanged from the previous close on Friday. On Tuesday, money markets will remain closed due to Gandhi Jayanti.
Rates on the inter-bank call money market closed at 6.10%, with transactions worth Rs 11,763 crore taking place. Rates in the market for collateralised operations ended at 5.99% while volumes were around Rs 30,733 crore. In the repo market, rates closed at 4.10% while deals worth Rs 16,238 crore were struck. Banks placed bids worth Rs 30,400 crore at the RBI’s window for liquidity adjustment, which the central bank mopped up completely.Traders expect the cash flows to rise further this week, as there are some redemptions or coupon payments, which is scheduled to take place this week.
The local currency ended the day at 39.84 levels per dollar, despite having opened much stronger at 39.75 levels. This was largely due to consistent intervention from the central bank, as large state-owned banks were seen purchasing dollars throughout the day. When the rupee started moving towards its intra-day high of 39.72 levels, the central bank stepped in to intervene aggressively.
On Friday, last week, the rupee had closed at 39.85 levels. Also, the dollar, which had lost heavily against the euro and the pound sterling, saw some correction on Monday, due to which it ended up stronger against these currencies.
Yields on forward contracts dipped sharply as the yield on the one-month contract closed at 0.32% (0.56%). The yield on the six-month contract ended the day at 0.68% (0.77%) and that on the one-year contract ended at 0.85% (0.95%).
On Friday, after market closing hours, RBI announced an auction of bonds under the market stabilisation route for Rs 7,000 crore. This made dealers in the government bond market extremely wary.
The yield on the benchmark paper, the 7.99% bond maturing in 2017, ended at 7.90%, unchanged from the previous close on Friday. On Tuesday, money markets will remain closed due to Gandhi Jayanti.
ADVERTISEMENT
Rates on the inter-bank call money market closed at 6.10%, with transactions worth Rs 11,763 crore taking place. Rates in the market for collateralised operations ended at 5.99% while volumes were around Rs 30,733 crore. In the repo market, rates closed at 4.10% while deals worth Rs 16,238 crore were struck. Banks placed bids worth Rs 30,400 crore at the RBI’s window for liquidity adjustment, which the central bank mopped up completely.Traders expect the cash flows to rise further this week, as there are some redemptions or coupon payments, which is scheduled to take place this week.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
