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Re rises to 1-month high on dollar sales

Source : BUSINESS_STANDARD
Last Updated: Thu, Jan 17, 2013 20:10 hrs
An employee arranges Indian currency notes at cash counter inside a bank in Agartala

The rupee rose to a one-month high on Thursday on dollar sales by state-owned banks and tracking firm local shares, dealers said.

It ended at 54.39 on persistent capital inflows and dollar sales following government's decision to virtually deregulate diesel prices in its continuing economic reform agenda. It rose to 54.23 a dollar on Thursday, a level last seen on December 13.

"RBI intervention was seen at different levels," said the trading head at a state-owned run bank, on condition of anonymity. Four dealers, speaking on condition of anonymity that the dollar sales were on behalf of the Reserve Bank of India (RBI), which intervened at multiple levels between 54.68 and 54.30 a dollar.

Two of the dealers also said RBI is likely to have sold around $250 million.

The rupee's rise was also supported by the rise in local shares after oil minister Veerappa Moily announced partial deregulation of diesel pricing.

Bonds rise on fresh buying
Government securities (G-sec) rose on fresh demand from banks and companies. The 8.33 per cent G-sec maturing in 2026 rose to Rs 103.37 from Rs 103.06 yesterday, while its yield declined to 7.92 per cent from 7.96 per cent.

Call rates end lower
Call money rates ended lower at the overnight market here on Thursday due to lack of demand from borrowing banks amidst ample liquidity in banking system. The rate finished lower at 8.15 per cent from the previous closing of 8.20 per cent. It moved in a range of 8.20 per cent and 7.95 per cent.


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