The rupee fell by three and half paise against the dollar and closed at 48.88/89. Opening the day higher at 48.83/84 from its previous close of 48.8450/8550, the rupee remained steady in the morning deals on good dollar sales from exporters. However, in the afternoon trades, the rupee dipped as banks had gone short on dollars. The intra-day low was seen at 48.90/9050. The greenback held steady in Asia on Friday, but the sentiment for the rupee remained positive. At the end of the trades, the rupee, however, bounced back from its intra-day losses and closed at 48.88/89. RBI fixed its reference rate for dollar and euro at 48.87 (48.85) and at 48.29 (47.07) respectively. In cross-currency trades, the euro closed at 48.23/25 while the pound-sterling closed at 75.02/05.
FORECAST: The rupee seen up on Monday.
Forward premiums continued to eased on Friday. The 6-month annualised forward premium closed easy at 4.90% (5.14%) and the one-year premium closed at 4.95% (5.15%). “Premiums came down with good receiving interests from the players. Easy call also helped the premiums to close easy”, . Call rates closed at 5.00-5.25% on Friday. The rupee, however, fell by three and half paise against the dollar and closed at 48.88/89 on Friday. The benchmark six-month premium, payable at end-November, closed at 97/99 paise. The cash/tom premium closed at 1.55/1.60 paise while cash/spot closed at 2.05/2.10 paise. In month-wise premiums, the July-dollar closed at 16/17 paise, while in the far forwards, the December dollar closed at 118/120 paise with May dollar at 219/221 paise and June-dollar at 237/239 paise.
FORECAST: Forward premiums seen range-bound on Monday.
Gilt prices came down on Friday from their thursday’s level on profit booking. There were concerns about the predicted outflow due to fresh auctions. RBI will conduct fresh auctions for Rs 7,000 next week. G-Secs opened lower as players were seen booking profits, after Thursday’s rally following the 25 basis points repo rate reduction. Yield on the G-Secs came down sharply on Thursday: the benchmark 10-year yield fell to 7.34%. On Friday, the market favourite 7.40% 2012 paper, which gained 170 paise on Thursday, closed to its pre-repo rate cut level of Rs 99.45. At the National Stock Exchange’s NSE’s wholesale debt market, traded volume of Rs 3,370.50 crore were seen. Trades worth Rs 810 crore was seen at the 7.40% 2012 paper, while those at 11.50% 2011A and 9.81% 2013 papers were amounted to Rs 485 crore and Rs 615 crore respectively.
FORECAST: Prices seen range-bound on Saturday.
— Compiled by Atmadip Ray