The rupee eased by four paise against dollar amid support for dollar from state-run banks, ending a three-day upward spiral with gains of about 28 paise. The rupee close at 46.90/91 against the previous close of 46.86/87. The rupee opened at 46.82/83, and seen a high of 46.80 paise, before some state-owned banks supported the dollar. This took the rupee down to 46.94 before closing down at 46.90/91. "But for the intervention of some banks, the rupee would have gained," a dealer said. "The analysts could not gather much from Alan Greenspans deposition before the Congressional committee yesterday. Though he said a rate cut is possible, he did not discuss its use when the economy was not responding to signals," a foreign bank dealer said. In the forwards market, the premiums have firmed up. Meanwhile, the RBI fixed its reference rate for dollar at 46.91 against the previous rate of 46.76.
FORECAST: The rupee seen gaining on Friday.
Forward premiums closed sharply at higher levels taking cue from the strengthening of dollar in the spot market. Both the six- and 12-month annualised premia were at 0.54 per cent (0.30 per cent) and 0.61 per cent (0.36 per cent) respectively. "Though the strength of the dollar was not the reasons for the rupee losing ground by four paise on Thursday, the forward premiums went up based on rupee movements in the spot market," a foreign bank dealer said. The premium for May 2003 closed almost at the previous level at 1.00/25 paise. The benchmark six-month dollar premium, payable at end-October, closed at 10/11 paise (8/9 paise). In month-wise premia in the far forwards, the March 2004 dollar and April dollar closed at 18/20 paise and 23/25 paise (15.50/16.50 paise and 17/18 paise) respectively.
FORECAST: Premiums seen falling on Friday.
The government securities market has seen a renewed interest of players. Despite the negative news in the forex market, the G-secs market has witnessed a bullish sentiment. Opening at lower levels than the previous close, the G-Secs continued their northward journey, but only a few G-Secs could surpass the previous close. "Players showed renewed interest, the previous day got affected by strike. Comfortable liquidity conditions also helped the market to post higher turnover," a dealer said. The benchmark 10-year 9.81% paper closed at 129.85 (129.94). The 11.40% 2008 shorter maturity paper closed at 125.54 (127.55). The 7.40% 2012 bond closed at 111.13 (111.15). The 8.07% 2017 bond closed at 119 (118.83). The 8.35% 2022 paper closed at 123.26 (123.32). On the NSEs WDM, volumes of Rs 7,519 crore were seen.
FORECAST: Prices seen rising on Thursday.
Compiled by BSS Reddy