Rupee stable despite sustained capital outflows

PTI Updated - May 24, 2011 at 10:09 PM.

Rupee

In line with local equities, the rupee on Tuesday closed just about stable by rising one paise to settle at 45.21/22 against the US currency, amid sustained capital outflows.

The rupee premium for the forward dollar recovered smartly on fresh paying pressure from banks and corporates.

The benchmark six-month forward dollar premium payable in October rose to 111-113 paise from Monday's close of 106-108 paise.

The RBI has fixed the reference rate for the dollar at Rs 45.25 and the euro at Rs 63.58.

Bonds move downward

Government securities reacted downwards on profit-booking by banks and corporates after Monday's smart gains.

The 8.08 per cent government security maturing in 2022 dropped to Rs 97.16 from Rs 97.35 on Monday, while its yield firmed up to 8.48 per cent from 8.45 per cent.

The 7.80 per cent government security maturing in 2021 also declined to Rs 96.19 from Rs 96.39, while its yield went up to 8.37 per cent from 8.34 per cent previously.

The 8.13 per cent government security maturing in 2022 too dipped to Rs 97.66 from Rs 97.83, while its yield grew to 8.45 per cent from 8.43 per cent.

The 7.59 per cent government security maturing in 2016, the 7.83 per cent government security maturing in 2018 and the 8.26 per cent government security maturing in 2027 ended higher at Rs 96.50, Rs 96.71 and Rs 96.8675, respectively.

Call rates rise

Call rates rose on the overnight call money market on some deficit of liquidity in the banking system.

The overnight call money rate resumed better at 7.45 per cent from Monday's close of 7.40 per cent and later moved in a range of 7.55 per cent and 7.30 per cent before ending higher at 7.50 per cent.

The RBI, under the Liquidity Adjustment Facility, purchased securities worth Rs 63,330 crore from 28 bids at the one-day repo auction at a fixed rate of 7.25 per cent, while sold securities worth Rs 560 crore from two bids at the one-day reverse repo auction at a fixed rate of 6.25 per cent.

Published on May 24, 2011 05:45