The Hindu Business Line : Rupee subdued; securities fall

The rupee closed at 45.59/60 after moving in a three paise band during the day. On Wednesday the currency had closed at similar levels of 45.5900/5950 in its value against the dollar.

"There was not much activity in the market with little demand from corporates most of which were closed," said a forex dealer in a state-run bank. The currency touched an intra-day high 45.5725 and a low of 45.6050.

In the forwards market, the premia were flat with the six-month premium closing at 0.00 per cent (0.03 per cent) and the one-year closing at 0.20 per cent (0.16 per cent).

The G-sec prices were seen falling by 10-15 paise on account of the hike in petrol and diesel prices.

Inflation figures are expected to reflect the trend in the coming weeks, said money market dealers. Higher inflation theoretically leads to higher interest rates.

The announcement of the OMO for the first week of January is also sagging the spirits of the market.

The market will be in a cautious mood till the auction and OMO gets over, according to the chief dealer in a PSU bank.

Some indicative papers were the 7.27 per cent 2013 paper, which closed at Rs 116.15, after opening higher at Rs 116.25.

The 8.07 per cent 2017 paper closed at Rs 123.60, after opening at Rs 123.75.

In the inter-bank call money market, rates were going at 4.25-4.50 per cent with mutual funds and banks lending funds.

Through the LAF window, the central bank accepted bids worth Rs 33,735 crore at the repo rate of 4.5 per cent.