The Hindu Business Line : Rupee weakens; bonds range-bound

According to forex dealers, foreign banks were selling dollars in the morning, which took the domestic currency to a high of 45.81. At this point State-run banks came in and started aggressively mopping up the greenbacks, taking the rupee down to an intra-day low of 45.88, after which it settled around closing levels.

Meanwhile, forwards eased on the back of exporters selling pressure, with the six-month premium ending at 1.31 per cent (1.48 per cent) and the one-year premium ended at 1.32 per cent (1.49 per cent).

Bond prices traded in a 5-10 paise band in the Government securities market on Thursday.

The 9.85 per cent 2015 paper opened at Rs 139.15 and got dealt up to Rs 139.21. The 8.07 per cent 2017 opened at Rs 123.52 and got traded up to Rs 123.58.

Dealers said, the market continued to be upbeat on the ample liquidity in the system. However, some bond market participants expect the RBI to come out with an OMO to mop up liquidity in the next few days.

Call rates hovered at around 4.50 per cent levels in the inter-bank market.

In the one-day repo under the LAF, RBI received and accepted 36 bids amounting to Rs 24,850 crore at the rate of 4.50 per cent.

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