RBI takes on FIIs, pulls Rupee from 64.13 low to 63.25 per $
21 Aug 2013 11:54 PM GMT
After heavy battering, the rupee, stocks and bonds showed some signs of a fierce fightback on Tuesday, with the Reserve bank of India (RBI) intervening in the market with massive selling of dollars as the domestic currency breached the 64-mark. For the first time ever, our nation’s currency slipped below the 100-mark against the British pound.
The rupee slipped to 64.13 against the dollar in intra-day trading amid foreign institutional investors (FIIs) pulling debt market funds, before the RBI stepped in to help recover some lost ground. The rupee closed at 63.25, just 12 paise lower than Tuesday’s level.
In tune with the rupee’s recovery, the stock markets too scripted a significant comeback with the Bombay Stock Exchange’s (BSE) benchmark Sensex ending 61 points lower after losing over 330 points at one point. FIIs sold stocks worth Rs 1,424 crore from the domestic stock markets, as per provisional data.
Finance Minister P Chidambaram continued his consultations with top officials and advisors for the second day on the current situation.
However, both the precious metals – gold and silver – fell further in the national capital on Tuesday . While gold fell further by Rs 235 to Rs 31,125 per 10 gm, silver fell by Rs 455 to Rs 50,155 per kg. The 10-year government security climbed to Rs 88.78 from Rs 86.87 previously, while its yield fell to 8.90 per cent from 9.23 per cent. On Monday the yield on the debt instrument touched a 5-year high of 9.25 per cent on fears of more liquidity tightening steps after the rupee’s free fall.
The rupee slipped to 64.13 against the dollar in intra-day trading amid foreign institutional investors (FIIs) pulling debt market funds, before the RBI stepped in to help recover some lost ground. The rupee closed at 63.25, just 12 paise lower than Tuesday’s level.
In tune with the rupee’s recovery, the stock markets too scripted a significant comeback with the Bombay Stock Exchange’s (BSE) benchmark Sensex ending 61 points lower after losing over 330 points at one point. FIIs sold stocks worth Rs 1,424 crore from the domestic stock markets, as per provisional data.
Finance Minister P Chidambaram continued his consultations with top officials and advisors for the second day on the current situation.
However, both the precious metals – gold and silver – fell further in the national capital on Tuesday . While gold fell further by Rs 235 to Rs 31,125 per 10 gm, silver fell by Rs 455 to Rs 50,155 per kg. The 10-year government security climbed to Rs 88.78 from Rs 86.87 previously, while its yield fell to 8.90 per cent from 9.23 per cent. On Monday the yield on the debt instrument touched a 5-year high of 9.25 per cent on fears of more liquidity tightening steps after the rupee’s free fall.
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