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MUMBAI: The rupee gained 11 paise against the dollar on Tuesday to close at 45.32/33. On Monday, the domestic currency closed at 45.4350/4400.

The appreciation was on account of the huge dollar inflows into the market by way of FIIs and also possibly some of the RIB proceeds making its way back into the country, said forex dealers.

The rupee opened at 45.40/41, which was the intra-day low and touched an intra-day high of 45.3050 against the dollar.

In the forwards market, exporters were on selling mode and premia fell by 30-35 basis points.

The six months forward closed at 0.74 per cent (1.10 per cent) and the one-year closed at 0.81 per cent (1.08 per cent).

In the government securities market, prices rallied by 50 paise for a second consecutive day with traded volumes touching Rs 10,000 crore as per the NSE reporting system. All-time highs in terms were touched today and this rise in prices is expected to continue till an OMO is announced.

Some indicative papers were the 6.05 per cent 2019 paper, which opened at Rs 105.70 and closed at Rs 106.20. The 6.5 per cent 2020 paper opened at Rs 108.50 and closed higher at Rs 109.06.

The 10-year yield closed at an all-time low of 5.06 per cent.

Yields in the corporate bond market were also seen falling by 10 basis points especially in the long-term issuances like that of Reliance, LIC and IDBI, said market dealers.

With surplus liquidity in the system, 35 bids worth Rs 21,715 crore were all accepted through the LAF window and call rates were comfortable at 4.30-4.40 per cent.

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