Re at 57 against $ despite govt steps

The currency market paid the Reserve Bank of India in its own coin, dashing the central bank’s hopes that the measures announced on Monday would give the rupee much needed relief. The RBI disappointed the market with weak magnets to attract foreign inflows into the country.

Before the measures were announced, the rupee was trading around 56.55 a dollar. Within 20 minutes of the announcement, the currency plunged to 56.97 a dollar. The decline in the euro hurt the rupee further, pushing it below 57 a dollar for the second session on Monday . The rupee ended slightly up from its previous close at 57.01 a dollar.

Bonds end mixed
Government securities (G-sec) ended mixed on alternate bouts of buying and selling. The 9.15 per cent G-sec maturing in 2024 gained further to Rs 105.95 from Friday’s level of Rs 105.8, while its yield edged down to 8.37 per cent from 8.38 per cent.

The 8.79 per cent G-sec maturing in 2021 firmed up to Rs 102.94 from Rs 102.83, while its yield eased to 8.33 per cent from 8.35 per cent. The 8.28 per cent G-sec maturing in 2027 shot up to Rs 98.57 from Rs 98.5, while its yield looked down by 8.45 per cent from 8.46 per cent.

However, the 8.19 per cent G-sec maturing in 2020 fell to Rs 100.05 from Rs 102.11, while its yield inched up to 8.18 per cent from 8.17 per cent.

Call rates recover
Call rates recovered at the overnight call money market due to fresh demand from borrowing banks. The rate closed higher at 8.15 per cent from last weekend’s closing level of 8.05 per cent. It moved in a range of of 8.25 per cent and eight per cent.