Re & yields stay flat

Written by Agencies | Mumbai | Updated: Jan 30 2010, 03:26am hrs
On Thursday, the rupee closed at the lowest level in almost a month on speculation importers purchased foreign exchange to settle month-end overseas bills.

The rupee closed at 46.3575 per dollar at the close as against 46.37 on Wednesday. The rupee rose earlier on Thursday on speculation gains in regional stocks will encourage overseas investors to buy local assets.

The rupee pared earlier gains as companies such as Indian Oil Corp, the nations largest state-run refiner, bought dollars to pay for crude oil purchases, said Vikas Babu, a currency trader at Andhra Bank. Asias third-largest economy meets almost three-quarters of its annual energy needs from imports.

Government bond prices showed a mixed trend due to uneven demand and supply transactions, while call rates ended lower at 3.25% on the overnight call money market here today owing to lack of demand from borrowing banks. The benchmark 10-year paper 6.35% GOI 2020 closed at Rs 91.75 implying a yield of 7.55%, unchanged. The overnight call money rate finished slightly lower at 3.25% against 3.30% after moving in a range of 3.32% and 3%.