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MUMBAI: The rupee ended marginally stronger on Monday at 45.83/84 per dollar, as compared to previous closing levels of 45.85/86.

According to dealers, after opening at 45.83/86, the domestic currency was driven to an intra-day low of 45.87 by the month-end corporate demand for greenbacks, which was offset later during the day by some exporter selling of dollars.

"The market is gearing up for the RIB redemptions on October 1, then we will see how the market takes it. The markets will remain closed on Tuesday on account of half yearly closing of accounts for banks,'' said a dealer.

Meanwhile, forwards inched up slightly, with the six-month premium ending at 0.84 per cent (0.60 per cent) and the premium for one-year ending at 0.96 per cent (0.88 per cent).

Bond prices were buoyant in a liquidity-driven government securities market on Monday. The 6.05-per cent 2019 paper opened at Rs 103.45 and got traded up to Rs 103.90. The 7.40-per cent 2012 opened at Rs 105 and went up to Rs 105.20.

Dealers said the market was upbeat on account of surplus liquidity in the system and the view that an open market operation was unlikely in the immediate future. Besides, expectations of a bank rate and repo rate cut in RBI's mid-term review of the credit policy next month have added to positive sentiment.

Call rates hovered easy at 4.50 per cent in the inter-bank market. In the one-day repo under LAF, RBI received and accepted 29 bids amounting Rs 26,270 crore.

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Rupee moves up; bonds buoyant

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