The Hindu Business Line : Rupee moves up; g-sec volumes rise

MUMBAI: The rupee appreciated by three paise on Wednesday to end the day at 45.24/25 against the dollar. The domestic currency opened at 45.27/28 but rose on fresh dollar supplies, said forex dealers.

The open was the intra-day low and the close was the intra-day high. While foreign banks were seen selling greenbacks, possibly FII supplies, the Reserve Bank of India was seen mopping it up at regular intervals, according to a dealer in a private bank.

In the forwards market, there were thin trades with some buying interest. The six months forward closed at 0.44 per cent (0.35 per cent) and the one-year closed at 0.49 per cent (0.45 per cent).

The Government securities got a fresh lease of life with volumes crossing Rs 4,000 crore for the first time in over two months. In recent months, the volumes had been dismally low, hovering at Rs 2,000 crore-Rs 3,000 crore.

Both banks and bond houses were seen coming in to buy, said the treasury head of a PSU bank. Prices were range-bound with 10-30 paise movement.

A heavily traded paper was the 7.38 per cent 2015 paper; it opened at Rs 116.85 and closed at Rs 117.15. The 10-year benchmark, the 7.37 per cent 2014 paper, closed at Rs 116.70 at a yield of 5.22 per cent, a tad up from Tuesday's close of Rs 116.60.

Liquidity was abundant, with funds worth Rs 41,475 crore going into the one-day repo window with the central bank.