Rupee falls by 14 paisa
The rupee was seen losing ground on Monday, trading at 49.01 against the dolllar at 12 noon, down 14 paisa from Friday close.
By ET Bureau |
MUMBAI: The rupee was seen losing ground on Monday, trading at 49.01 against the dolllar at 12 noon, down 14 paisa from Friday close. Dealers said that trading was very lacklustre with low volumes. The local unit closed at 48.87 on Friday.
"Trade is likely to remain in a range of 48.90 and 49.15 against the dollar," says Navin Raghuvanshi, associate vice-president, foreign exchange trading at Development Credit Bank. "Dollar is trading strong against major global currencies and by this logic, the rupee should have actually traded still weaker." he said. BSE sensex fell 1.9% to trade at 9241.
The ten-year bond rose despite uncertainities about further announcement of additional borrowings. Dealers are hopeful that yields at the highest level in three weeks could attract new investors. Banks and primary dealerships may have increased purchases after benchmark yields increased by a record 92 basis points last month. The government sold a new 10-year bond at 6.05% on Friday.
The yield on the 6.05% paper due January 2019 fell 4 basis points to 5.87% as of 12 noon. It had ended Friday at 5.91%. Although RBI's indicative calendar shows the government is scheduled to sell bonds for Rs 7,000 crores between February 6-9, it did not announce any auction for this week. This has brought some cheer in the market.
Liquidity was comfortable with call money trading at 4.20% at 12 noon, near the reverse repo rate, as per CCIL.
"Trade is likely to remain in a range of 48.90 and 49.15 against the dollar," says Navin Raghuvanshi, associate vice-president, foreign exchange trading at Development Credit Bank. "Dollar is trading strong against major global currencies and by this logic, the rupee should have actually traded still weaker." he said. BSE sensex fell 1.9% to trade at 9241.
The ten-year bond rose despite uncertainities about further announcement of additional borrowings. Dealers are hopeful that yields at the highest level in three weeks could attract new investors. Banks and primary dealerships may have increased purchases after benchmark yields increased by a record 92 basis points last month. The government sold a new 10-year bond at 6.05% on Friday.
The yield on the 6.05% paper due January 2019 fell 4 basis points to 5.87% as of 12 noon. It had ended Friday at 5.91%. Although RBI's indicative calendar shows the government is scheduled to sell bonds for Rs 7,000 crores between February 6-9, it did not announce any auction for this week. This has brought some cheer in the market.
Liquidity was comfortable with call money trading at 4.20% at 12 noon, near the reverse repo rate, as per CCIL.
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