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Re gains as US agrees on 'fiscal cliff' deal

Source : BUSINESS_STANDARD
Last Updated: Tue, Jan 01, 2013 19:31 hrs

The rupee started 2013 on a positive note, tracking gains in local shares after US lawmakers agreed on a deal which would help avert the “fiscal cliff” but weak domestic data limited a sharper rise.

The partially convertible rupee closed at 54.68/69 a dollar versus its previous close of 54.99/55.00. Traders said gains in the domestic share market also boosted sentiment for the rupee.

The US Senate moved the US economy back from the edge of a “fiscal cliff” on today, voting to avoid imminent tax raises and spending cuts in a bipartisan deal that could still face stiff challenges in the House of Representatives.

Bonds firm on sustained demand
Government securities (G-sec) continued to rule firm on persistent buying support from banks and companies.

The 8.33 per cent G-sec maturing in 2026 hardened further to Rs 101.94 from yesterday’s level of Rs 101.38, while its yield remained weak to 8.09 per cent from 8.16 per cent.

Call rates end decline
Call money rates reacted downwards at the overnight market here today, owing to lack of demand from borrowing banks amid ample liquidity in banking system.

It finished lower at eight per cent from yesterday’s close of nine per cent.




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