MUMBAI: The rupee was trading largely unchanged from its previous close, quoting at 47.74 against the dollar at 3pm, its lowest since
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Dealers attributed this to global dollar weakness and choppy stocks. Its now just two paise weaker than its previous close and has traded in a narrow 26 paisa range for the day.
The dollar fell broadly on Tuesday after traders sold the unit after comments from Russian premier that the world needs new reserve currencies. Yen rose after weak data in the US made traders move towards perceived weaker assets.
Stocks were choppy and the key stock market index BSE Sensex was up 0.9% at 3 pm.
Government bonds were trading weak ahead of the Rs 15,000 crore bond auction on Friday. Dealers expect action to remain range-bound in the coming days till the budget, when they expect some clarity to emerge on the government's borrowing programme. Meanwhile the feeling is slowly sinking in among traders that days of policy easing may be
fast getting over.
This is the for fifth time in succession that the size of the scheduled auction has been hiked to Rs 15,000cr from Rs 12,000cr.
The government will sell Rs 5,000 crore of the 6.49% bonds due 2015 and Rs 5,000 crore of the 6.35% notes due in 2020 at the auction. The auction will also include Rs 2,000 crore of the 7.50% notes maturing in 2034, the central bank said in addition to Rs 3,000 crore of new 15-year bonds.
The yield on the 6.07% paper maturing in 2014, traded higher at 6.66% at 3 pm as against its 6.63% close on Monday. While this paper was up, many of the other papers traded in the red. The benchmark 6.05% paper of 10 year.
