The local currency gained on the back of good trade and capital inflows. The dollars weakness against other global currencies, particularly the euro, also helped to post gains. The rupee has appreciated by around 33-1/2 paise since November 27 when it started the north-bound route.
Overall outlook for the rupee was encouraging, following the revival of foreign institutional investor inflows into the booming bourses after improvement in the Indo-Pak relationship.
The rupee is expected to consolidate further on Monday on the back of bunched up weekend dollar supplies, but surrogate intervention by the Reserve Bank of India (RBI) will put a solid lid on its sharp rise. Despite the rupees robust strength, RBI will like to contain its gains, which would help give exporters an competitive edge.
In forwards, quotes were mostly in discounts, but in the latter part of the week, most of the discounts got reduced sharply and from May onwards turned into premiums, as the cash-dollar shortage eased considerably amidst fresh paying pressure. Far-forward premiums rose on renewed paying pressure.
In cross currency trades, the rupee tumbled to lifetime lows against the euro since its inception in early 1998 and weakened also against the yen. It, however, firmed up against the pound sterling.
On the National Stock Exchanges wholesale debt segment, turnover stood at Rs 1,600 crore in 268 trades on Saturday. Top securities traded were the 8.07 per cent 2017 for Rs 265 crore at a weighted yield of 5.68 per cent, 7.46 per cent in 2017 was traded for Rs 205 crore at a weighted yield of 5.68 per cent, and the 6.25 per cent 2018 for Rs 180 crore at a weighted yield of 5.81 per cent.
During the week-ended today, the total turnover was at Rs 17,595.22 crore as against last weeks turnover of Rs 12,164.56 crore. The total number of trades during the week was at 2,547 as against the last weeks level of 1,678. The highest volume during the week was Rs 3,786.20 crore on December 3 and the lowest was seen at Rs 1,600 crore on Saturday.
In this week, the weighted yields on securities with a maturity within 3 years, 3-7 years, 7-10 years and more than 10 years were quoted at 4.53 per cent, 4.98 per cent, 5.20 per cent and 5.69 per cent respectively. The weighted yields on treasury bills maturing within 90 days, 91-182 days and 183-365 days were quoted at 4.20 per cent, 4.22 per cent and 4.31 per cent respectively.
The traded value of government securities/treasury bills and state paper was at Rs 17,263.32 crore representing 98.11 per cent and from non-government securities, it was Rs 332.60 crore representing 1.89 per cent of the total traded value.