Mumbai, July 24: The rupee recovered by almost 30 paise on Monday even as bond prices fell by nearly 100 paise in response to the Reserve Bank's tough measure announced on Friday. The rupee opened stronger right at start of trades at 44.70/72 from its last close at 45.01/02, and closed at 44.74/75. The rupee had hit an all-time low of 45.07/08 on Friday on heavy dollar demand from corporates and importers on Friday.The Reserve Bank had responded by hiking the bank rate by 100 basis points to 8 per cent; the CRR by 50 basis points to 8.50 per cent; and reducing eligible refinance limits to banks by 50 per cent.
Forward premiums ended a shade higher on Monday. The six-month annualised forward premia traded higher at 4.70 per cent (3.87 per cent). "A few players were seen paying... demand for forward dollars is good. Premiums were quoting high to steady despite the recovery in the spot-rupee", a dealer with a forex brokerage said.
Securities prices fell by over 100 paise after opening flat. The 12.50 per cent 2004 closed at Rs 104.40 down from its previous levels at Rs 105.50 thereabouts. Similarly, the 11.90 per cent 2007 fell to Rs 103 levels from Rs 104. Call rates played no part and quoted in the 8 per cent top 8.15 per cent bad.
"There are fears that if the present measures continue, then interest rates could firm up", an analyst with a primary dealership said.
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