Rupee trading weak by 26 paise at 62.53/dollar - Hindu Business Line

Mumbai, Sept 23:   The rupee was trading weak by 26 paise at 62.53 against the dollar at 11.26 a.m. local time due to month-end dollar demand and on the back of weakness in the domestic equity market. The rupee shed 33 paise to 62.60 per dollar in the opening session against the previous close of 62.27. Last week, the domestic unit had gained significantly as the US Federal Reserve chief Ben Bernanke said it plans to continue with its $85-billion quantitative easing programme. However, on Friday, the RBI had cut back on some of the emergency measures taken to support the rupee in the monetary policy announcement. Monetary policy announcement In the monetary policy announcement, RBI raised the repo rate (the rate at which banks borrow from RBI) by 25 basis points to 7.5 per cent. However, providing a leeway to banks, the central bank had cut the marginal standing facility rate to 9.5 per cent and also reduced the minimum daily maintenance of the cash reserve ratio (CRR) from 99 per cent of the requirement to 95 per cent. According to Srinivasaraghavan, Head of Treasury at Dhanlaxmi Bank, the rupee may be under pressure during the current weak due to month-end demand for dollar. Call rates, G-Secs Yields on the 10-year benchmark 7.16 per cent government bond, which matures in 2023, jumped to 8.61 per cent from 8.57 per cent. Prices for the 10-year bond fell to Rs 90.55 after opening at Rs 90.8. Srinivasaraghavan said that bond yields will stay within the range of 8.65 to 8.40 per cent as there is expected to be devolvement in Monday's bond auction. Inter-bank call money rates, the rates at which banks borrow from each other to meet their short-term funding needs, opened higher at 9.65 per cent from the previous close of 9.25 per cent. Deepa.nair@thehindu.co.in (This article was published on September 23, 2013) via Business - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNHH2S2ZxCCRg7KfUrfJT0mzimtfFQ&url=http://www.thehindubusinessline.com/markets/forex/rupee-trading-weak-by-26-paise-at-6253dollar/article5159342.ece

Put the internet to work for you. via Personal Recipe 2910127