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MUMBAI: The rupee closed about two paise lower on Monday at 45.2850/2950 in its value against the dollar. On Friday, the domestic currency has closed at 45.2600/2650.

There was heavy selling of the greenback by various players, which took the rupee to its intra-day high of 45.2250. However, all supplies of the greenback were being mopped up by the nationalised banks, which perhaps was on behalf of the central bank, said dealers.

Meanwhile, there was seen to be little corporate demand for the dollar with the close being the intra-day low.

In the forwards market, the premia eased considerably with heavy selling by exporters and importers abstaining from the market, said dealers.

The six months forward closed at 0.30 per cent (0.71 per cent) and the one-year closed at 0.48 per cent (0.73 per cent).

Prices of government securities were range-bound till 5p.m. when it rallied a tad reacting to the RBI Governor, Dr Reddy's reiterations of the inflation figure projection at 4.00-4.50 per cent.

Towards the fag-end, prices rose by 5-20 paise across maturities while liquidity was comfortable.

The ten-year benchmark, the 7.27 per cent 2013 closed with a yield of 5.06 per cent and a price of Rs 116.95 after dipping to a low of Rs 116.85. The 8.07 per cent 2017 paper closed at a yield of 5.40 per cent and a price of Rs 124.95 after opening the day at Rs 124.70/75.

Through the LAF window, RBI accepted as much as Rs 13,420 crore by way of 37 bids at the repo rate of 4.5 per cent.

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Rupee a tad lower; gilts range-bound

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