Re drops on RBI's stimulus view

Last Updated: Thu, Jan 17, 2013 04:57 hrs

The rupee weakened for a second day after the central bank said policy makers had limited room to stimulate economic growth.

It declined 0.1 per cent to 54.69 a dollar here, according to data compiled by Bloomberg.

Bonds remain low
Government bonds remained lower on sustained selling pressure from banks and companies. The 8.15 per cent government security maturing in 2022 declined to Rs 101.75 from Rs 102.08 previously, while its yield climbed at 7.88 per cent from 7.83 per cent.

The 8.33 per cent government security maturing in 2026 slid to Rs 103.06 from Rs 103.54, while its yield firmed to 7.96 per cent from 7.90 per cent.

Call rates end high
Overnight money rates finished higher on good demand from borrowing banks. It finished at 8.20 per cent from 8.05 per cent yesterday. It moved in a range of 8.20 per cent and 7.85 per cent.

The Reserve Bank of India under the liquidity adjustment facility purchased securities worth Rs 842.20 billion in 33 bids at the one-day repo auction at a fixed rate of eight per cent and sold securities worth Rs 0.05 billion in one bid at the one-day reverse repo auction at a fixed rate of seven per cent in the evening.

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