• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Our Bureau

MUMBAI: The rupee closed four paise weaker at Rs 45.42 against the dollar on Friday against Thursday's close at Rs 45.38 in a volatile forex market.

Dealers said that after opening at Rs 45.37, the domestic currency slipped on consistent buying of greenbacks by State-run banks.

"The rupee will in all likelihood consolidate around these levels. But we might see some more action in the forwards as market participants will trade more in the premia in the next few days," said a dealer with a private sector bank.

Meanwhile, the six-month premium closed at 0.30 per cent (0.27 per cent), while the premium for one year ended at 0.42 per cent (0.38 per cent).

Bond prices remained volatile amid thin trades in a bearish Government securities market.

Dealers said the market was largely subdued with a couple of stray deals moving bond prices. The 7.46-per cent 2017 opened at Rs 118.90 and got dealt up to Rs 119.20. The 10-year paper was not quoted, dealers said.

"There are no buyers in this market and a stray deal is not reflective of the sentiment in the market. There are concerns about a liquidity crunch in the future even if the market is amply liquid now," said a bond dealer with a private bank.

Call rates touched 3.50 per cent levels in the inter-bank market.

Meanwhile, in the three-day repo under LAF, the Reserve Bank of India received and accepted 48 bids amounting Rs 16,815 crore at 4.50 per cent.

Article E-Mail :: Comment :: Syndication

Stories in this Section
PNB Gilts seeks RBI nod for portfolio management

Copyright © 2003, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line