25 august 2005

rupee weakens as fii investments reduce to a trickle
mumbai: the rupee slid to a near three-month low on the back of a fall in foreign institutional inflows into the indian equity markets and a strong dollar demand in the wake of firming crude oil prices. the rupee closed at 43.73/74.

the rupee has been weakening over the past few days with fii investment in the country reducing to a trickle - us$2.20mn on monday and us$13.90mn on tuesday. this is a reversal of the trend of huge inflows during the beginning of the month, with the week ending august 5 recording fii inflows of $ 582.7 million.

forwards market: the 12-month premia ended at 0.67 per cent (0.75) and the 6-month closed at 0.73 per cent (0.71).

g-secs: the 10.25-16 year-2021 paper closed at rs125.45 (7.47 per cent ytm), higher than tuesday's close at rs125.36 (7.48 per cent ytm). the 7.37-9 year-2014 paper closed at rs102.03 (7.05 per cent ytm), the same level as tuesday's rs102.03 (7.05 per cent ytm). the 7.38-10 year-2015 benchmark paper was dealt at rs102.10 (7.08 per cent ytm), lower than tuesday's closing at rs102.16 (7.07 per cent ytm).