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MUMBAI: The domestic currency closed at 45.9750/9850 per dollar on Thursday, marginally lower than Wednesday's close at 45.95/96 in the forex market on Thursday.

The rupee opened at 45.96/98 and slipped to an intra day low of 46.07/08. "There was some uncertainty in the market initially, with the RBI banning OCB's from investments into the country, close in the heels of bringing down the cap on NRE rates. However, as soon as the news came in about RBI reversing its stance on OCB's, sentiment perked up again to some extent,'' said a forex dealer with a foreign bank.

Dealers expect the rupee to regain lost ground and settle at around 45.70/80 levels next week.

Meanwhile, forwards inched up with the six-month premia ending at 1.26 per cent (1.11 per cent) and the premium for one year ending at 1.30 per cent (1.21 per cent).

Bond prices were down by around 30 paise across maturities due to lack of buying interest on Thursday in the Government securities market. The 7.46-per cent 2017 paper opened at Rs 117.30/40 and slipped to Rs 117.10/12. The 9.39-per cent 2011 paper opened at Rs 126.37 and came down to Rs 126.10.

"There is some concern about liquidity; call rates also inched up slightly today. But one has to wait and watch how things turn out, the inflation figures on Monday might give us some indication about the near term outlook," said a dealer.

Call rates ended at around 4.60-4.65 per cent levels.

Meanwhile, in the one-day repo under LAF, the RBI received and accepted 26 bids amounting Rs 16,185 crore at 4.5 per cent.

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