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MUMBAI: The rupee closed stronger by around four paise on Friday at Rs 45.93-94 per dollar, as against Thursday's close at Rs 45.9750-9850. The domestic currency opened the day at Rs 45.93-94.

Dealers said the sentiment had perked up after the RBI's assurances about managing the RIB redemptions without much impact on the financial markets.

``There were some apprehensions but no widespread panic. Some import cover took place over the past couple of days, but that was genuine and expected during the month-end. There is no mad rush to cover '', said a dealer with a private sector bank.

In fact, forward premia eased by around 7-10 basis points , with the six-month premium ending at 1.13 per cent (1.22 per cent) and the one-year premium ending at 1.22 per cent (1.29 per cent).

Bond prices also regained some lost ground.

Dealers said the market was still cautious and had adopted a wait-and-watch approach, as some amount of tightening in rupee liquidity was expected towards month-end.

The G-sec market saw moderate volumes at around Rs 4,000 crore, as compared to an average of Rs 8,000 crore in a bullish market. The 8.07 per cent 2017 paper tclosed at Rs 122.37 (Rs 122.35). The 9.81 per cent 2013 got dealt up to Rs 133.60 (Rs 133.58)

Call rates remained between 4.40 per cent and 4.60 per cent in the inter-bank market. Meanwhile, in the three-day repo, under the LAF, RBI received and accepted 25 bids amounting to Rs 9,040 crore at the rate of 4.5 per cent.

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No RIB redemption hiccups for rupee

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