The Indian rupee fell on Monday, posting its first fall in three quarters, as suspected intervention by the central bank continues to prevent the currency from gaining much above 60 to the dollar. The partially convertible rupee closed at 60.19 to the dollar compared with 60.095 on Friday.
The government bond (G-sec) ended narrowly mixed on alternate bouts of buying and selling. Meanwhile, the overnight call money rate remained higher due to sustained demand from borrowing banks.
The 8.83 per cent 10-year benchmark bond maturing in 2023 climbed to Rs 100.5325 from Rs 100.51, while its yield edged down to 8.74 per cent from 8.75 previously.
The 8.12 per cent government security maturing in 2020 gained to Rs 97.00 from Rs 96.99, while yield held stable to 8.74 per cent.
The 8.60 per cent government security maturing in 2028 also looked up to Rs 99.56 as against Rs 99.3875, while yield fell to 8.65 per cent from Rs 8.68 per cent.
However, the 8.28 per cent government security maturing in 2027 eased to Rs 95.8650 from Rs 95.90, while its yield held steady to 8.81 per cent.
The 8.27 per cent government security maturing in 2020 fell to Rs 98.50 from Rs 98.57, while its yield moved-up to 8.60 per cent from 8.58 per cent.
The 7.28 per cent government security maturing in 2019 dipped to Rs 98.50 from Rs 98.57, while its yield held stable to 8.62 per cent.
The overnight call money rates ended higher at 8.70 per cent from last Friday’s level of 8.00 per cent. It moved in range of 9.25 per cent and 8.10 per cent.
Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 213.49 billion in 55-bids at the 1-day repo auction at a fixed rate of 8.00 per cent today morning, while it sold securities worth Rs 53.33 billion from 18-bids at the 3-days reverse repo auction at a fixed rate of 7.00 per cent last Friday.