Among the money market instruments, the commercial paper market and the market for certificates of deposits also remained very buoyant in line with seasonal trends, said the first quarter review of macroeconomic and monetary developments, 2005-2006.
The foreign exchange market however remained orderly with revaluation of the Chinese currency revaluation exerted upward pressure on the exchange rate. The US dollar appreciated against major currencies during the first quarter of 2005, reflecting growing interest differentials in favour of the US and uncertainty in the Euro zone. The rupee remained broadly stable against the dollar and stood at Rs 43.54 per US dollar as on July 20 after touching a high of 43.76 on June 2nd.
Forward premia declined sharply in tandem with movement of rupee in the spot segment in view of the announcement relationg to phaing out the MIFOR benchmark for pricing interest rate derivative deals.
