According to an RBI press release, the bank also proposes to raise Rs1,000 crore through the regular auction, with Rs500 crore each to be raised in the auctions of the 91-day T-Bills and 182-day-T bills respectively.

The auctions will be conducted using `Multiple Price Auction' method.

Tenders should be submitted on October 19. Successful bidders will have to make payment on October 21.

14 October 2005

Rupee falls further
Mumbai: The rupee further fell against the dollar on Thursday amid a fall in the stock market and fears of FII outflows that led to heavy demand for the dollar.

The rupee opened at 44.90/91 and fell further to 44.96/97. It then touched an intra-day high of 44.87/88 before finally closing lower at 44.9450/9550. On Tuesday, the domestic currency had closed at 44.86/87.

To stop the fall of the rupee the Resrve Bank sold dollars at 44.95 levels causing the rupee to appreciate slightly during the day.

Forwards: In the forward market, the 12-month premium closed at 0.55 per cent while the six-month premium ended at 0.63 per cent.

Bonds: In the bond market, prices were flat as dealers held light positions ahead of the half-yearly review of the Credit Policy. Traded volumes were thin at Rs 870 crore.

Bonds opened weak and closed at the same level or slightly higher.

G-Secs: The 10.25-16-year-2021 paper, currently the most active, opened at Rs125.20 (7.49 per cent YTM). It moved up to Rs125.37 before closing at Rs125.20 (7.49 per cent YTM). The 8.07-9-year-2014 paper opened at Rs106.16 (7.258 per cent YTM) and closed at Rs102.26 (7.24 per cent YTM). The 7.38-10-year-2015 benchmark paper opened at Rs101.54 (7.158 per cent YTM) and closed Rs101.60 (7.15 per cent YTM).

Call rates: The call rate closed at 5-5.05 per cent.

Reverse Repo: In the one-day reverse repo auction, the Reserve Bank of India received and accepted 31 bids amounting to
Rs18,590 crore.

CLBO: In the CBLO market, there were 279 trades for
Rs11,667.65 crore in the rate range of 4.78-5.25 per cent.

13 October 2005

Rupee falls
Mumbai: The rupee opened at 44.84/86 per dollar on Tuesday. It reached a high of 44.97/98 and finally closed at 44.87/89 per dollar after RBI stepped in through state owned banks. The domestic currency continued to fall for third consecutive day. Selling of dollars was seen in the afternoon and hence, rupee recovered from a session low of 44.97 per dollar.

G-Secs: Government securities prices inched up on Tuesday increasing by 15-30 paise in the latter half of the trading session. However, there was cautious trading as an interest rate hike was expected at the credit policy review.

The yield of benchmark 7.38 per cent government stock maturing in 2015 ended at 7.13 per cent as compared to 7.16 per cent on Monday. Among the highly traded securities 10.25 per cent government stock maturing 2021 closed at Rs125.35 (7.47-per cent yield) as compared to Rs125.12 (7.49-per cent yield) on Monday. Whereas, the 7.37 per cent government stock maturing in 2014 ended 13 paise higher than Monday's closing levels, to
Rs102.22 (7.02-per cent yields) from Rs102.09 (7.03-per cent yields).

Meanwhile, the Reserve Bank of India announced the cut-off price for its weekly and fortnightly treasury bills. The cut-off price of 91 day treasury bill was at Rs98.65 (yield of 5.4889 per cent for Rs2,000 crore out of which Rs1,500 crore was for market stabilisation scheme (MSS). For the 364-day treasury bill, the cut-off price was announced at Rs94.49 (yield of 5.8473 per cent) for Rs2,000 crore out of which Rs1,000 crore was MSS amount.

Call rates: On the overnight call money markets, the call rates ended at 4.95 per cent-- 5.05 per cent with enough liquidity in the market.

Reverse Repo: On a one day reverse repo auction RBI absorbed Rs17,915 crore from the system.

Forwards: Meanwhile, on the forward market front, the six months annualised premium ended at 0.49 percent as compared to 0.77 percent on Monday.

RBI steps in to arrest rupee fall below 45 mark
Mumbai: The rupee recovered from an intra-day low of 44.97 per dollar after the Reserve Bank of India intervened on Tuesday and sold dollars through state-run banks to support the market.

The rupee weakened for a third straight session on Tuesday, to end the trading session at 44.87, dropping 0.25 per cent to its lowest close in 10 months.

The domestic currency lost nearly 2 per cent in October and nearly 3.3 per cent this year, as the interest of the foreign institutional investors (FIIs) in the domestic market appears to have dipped a bit.

On Monday, FIIs were net buyers at Rs 74.40 crore in the cash segment, after being net sellers at Rs 860.40 crore on Thursday and Friday last week.

Added to this the arbitrage opportunity of about 15 paise between the offshore and onshore forward markets fuelled the negative sentiment among the forex investors to buy dollars in the domestic market and sell them offshore.

In the forward market, premia were seen plummeting with the six month annualised premium closing at 0.49 per cent compared to 0.77 per cent on Monday, even the 12-month forward premium fell to 0.50 per cent as against its previous close of 0.64 per cent.