Rupee halts 4-day slide

The rupee halted a four-day decline after investors abroad boosted their holdings of the nation’s stocks.

Funds based abroad bought $227 million more shares than they sold on June 24, the most this month, according to Securities & Exchange Board of India data. The Dollar Index, which tracks the US currency against those of six major trading partners, dropped 0.3 per cent this week, signalling demand for the perceived safety of the dollar has weakened.

The rupee was little changed at 45.0350 per dollar at close in Mumbai, according to data compiled by Bloomberg. It has lost one per cent this quarter, the worst performance among Asia’s 10 most-traded currencies after the Thai baht.

BOND DECLINES
Government bonds declined due to selling pressure from banks and companies.

The 7.80 per cent government security maturing in 2021 dropped to Rs 96.78 from Monday's close of 96.92, while its yield moved up to 8.28 per cent from 8.26 per cent. The 8.08 per cent government security maturing in 2022 slipped to Rs 97.88 from 98.03, while its yield rose to 8.38 per cent from 8.35 per cent.

The 8.13 per cent government security maturing in 2022 fell to Rs 98.24 from Rs 98.38, while its yield looked up to 8.37 per cent from 8.35 per cent. The 7.83 per cent government security maturing in 2018 and the 8.28 per cent government security maturing in 2032 were also quoted lower at Rs 97.38 and Rs 96.92, respectively. The Reserve Bank of India, under the Liquidity Adjustment Facility, purchased securities worth Rs 49,025 crore from 22 bids at the one-day repo auction at a fixed rate of 7.50 per cent.

CALL RATE RECOVERS
The call rate recovered to close at 7.65 per cent at the overnight call money market on Tuesday, owing to fresh buying support from borrowing banks. At yesterday’s close, the call money rate stood at 7.50 per cent . It moved in a range wide of 7.95 per cent and 7.20 per cent.