The Hindu Business Line : Rupee down 6 paise; bonds range-bound

MUMBAI: The rupee closed six paise weaker at 45.28 to the dollar on Thursday, due to some amount of corporate demand towards the fag end of the day.

On Wednesday, the domestic currency had ended at 45.22.

After opening at 45.2350, the rupee firmed up to a high of 45.23 before slipping steadily towards closing. "There was no dollar demand through the day and then some corporates came in to buy just before close, taking the currency down at closing. However, the rupee will be back at around 45.22 levels tomorrow," said a dealer with a private sector bank.

Meanwhile, in the forwards market, premia remained relatively flat with the six-month ending at 0.45 per cent (0.41 per cent) and the premium for one year ending at 0.47 per cent (0.48 per cent).

Bond prices traded in a thin 10 paise band in an otherwise lacklustre government securities market.

The 8.07 per cent 2017 closed at Rs 122.85 (Rs 122.75), while the 7.37 per cent 2014 closed at Rs 116.77/80 (Rs 116.70).

The market was devoid of any serious buying interest and bond prices fluctuated on stray deals being struck, dealers said.

Call rates remained around 4.20 per cent levels. Meanwhile, in the one-day repo, the RBI received and accepted 59 bids amounting to Rs 49,345 crore at the rate of 4.50 per cent.