Monday 7 April 2014

Rupee Trading Weak At 60.15 On Capital Outflows

Paring the morning session gains, the rupee was trading weak at 60.15 against the US currency in the afternoon trade due to weak global market and capital outflows from the domestic equity market.


The domestic unit opened stronger at 59.91 against Friday’s close of 60.10 per dollar due to a higher opening in the equity market and dollar selling by banks and exporters.


The domestic unit strengthened to 59.79 during the morning trade on strong inflows combined with dollar selling and a weak euro. However, weak global market amid capital outflows from the domestic equity market weakened the Indian currency to 60.20 against the greenback.


Japanese Nikkei fell to a one-week low, while world stocks slipped from last week’s six-year high led by a decline in technology shares, reports said.


In addition, the euro was under pressure from expectations that the European Central Bank may undertake an asset purchases programme this year to support the economy, thereby easing policy and pushing down its bond yields.


Call rates, bonds


The overnight call money rate, the interest rate at which banks borrow money from each other to overcome short-term liquidity mismatches, was trading higher at 8.15 per cent from Friday’s close of 7.10 per cent.


The yield on 10-year benchmark 8.83 per cent government bond, maturing in 2023, softened a tad to 9.05 per cent from its previous close of 9.06 per cent. Prices of the security were trading slightly higher at Rs 98.54 from Rs 98.49. Bond prices and yields move in the opposite direction.


Source:- thehindubusinessline.com





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