The Hindu Business Line : Rupee tad higher; securities rise

MUMBAI: The rupee on Tuesday closed at 45.5350/5450 against the dollar in a dull trade. posting a small gain compared to Monday's close of 45.55/56.

The rupee opened at 45.54/55, which was the intra-day low. The market was muted with demand matching supply, said a forex analyst. The central bank was seen in the market intervening periodically.

In the forwards market, premia softened further with selling of contracts by exporters. The six months forward closed at 0.10 per cent (0.22 per cent) and the one-year closed at 0.32 per cent (0.37 per cent).

The government securities opened lower on Tuesday reacting to the hike in diesel and petrol prices. There were no triggers during the day till Standard & Poor upgraded India's long-term foreign currency rating from negative to stable.

On thin volumes prices moved up by 10 paise in the long-dated papers following the international rating agency's announcement. The 8.07 per cent 2017 paper opened at Rs 121.40/45 touched a high of Rs 121.60 and closed lower at Rs 121.51/55. The ten-year benchmark, 7.27 per cent 2013 paper closed at Rs 115.55 with a corresponding yield of 5.20 per cent.

In the inter-bank call money market, rates were soft at below 4.35 per cent with mutual funds ready to lend funds.

Through the LAF window, the central bank accepted as much as Rs 31,110 crore through 55 bids at the repo rate of 4.5 per cent.

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