Re falls for second day on slowdown fears

The rupee fell for a second day on concern that a deepening slowdown in the global economy would deter investment in shares. It declined 0.4 per cent to 53.02 a dollar here, according to data compiled by Bloomberg. One-month implied volatility, a measure of exchange-rate swings used to price options, fell 10 basis points, or 0.1 percentage point, to 11.20 per cent.

A government report on Monday showed inflation accelerated to 7.81 per cent last month, exceeding the median estimate of 7.7 per cent in a Bloomberg survey. Bank of Israel Governor Stanley Fischer said in Tokyo on October 13 that the world was “awfully close” to a recession, while economists predicted China’s economy expanded 7.4 per cent last quarter, the slowest pace since 2009.

 

“Weak sentiment from global markets is weighing on the rupee,” said Pramit Brahmbhatt, Mumbai-based chief executive officer at Alpari Financial Services India Ltd. “China’s third-quarter growth numbers are in focus.”

Bonds remain mixed
Government securities (G-sec) closed mixed on alternate bouts of buying and selling.

The 8.15 per cent G-sec maturing in 2022 eased to Rs 99.86 from Rs 99.8625 last Friday, while its yield held steady at 8.17 per cent. The 8.19 per cent G-sec maturing in 2020 dropped to Rs 99.90 from Rs 99.93, while its yield inched up to 8.21 per cent from 8.20 per cent. The 8.07 per cent G-sec maturing in 2017 declined to Rs 99.70 from Rs 99.73, while its yield moved up to 8.14 per cent from 8.13 per cent. However, the 8.97 per cent G-sec maturing in 2030 rose to Rs 105.42 from Rs 105.41 previously, while its yield held stable at 8.38 per cent. The 8.33 per cent G-sec maturing in 2036 gained to Rs 99.20 from Rs 99.15, while its yield was unchanged at 8.41 per cent. The 8.28 per cent G-sec maturing in 2032 went up to Rs 98.86 from Rs 98.80, while its yield held steady at 8.40 per cent.

Call rates end higher
Call money rates ended slightly higher at the overnight market here on Monday on good demand from borrowing banks.

The three-days’ call money rate finished slightly higher at 8.07 per cent from last Thursday’s closing level of 8.05 per cent. It moved in a range of 8.10 per cent and 7.95 per cent.