The Hindu Business Line : Rupee in range; bonds recover

MUMBAI: The rupee moved in a narrow end to close at 44.15/17 against the dollar on Wednesday. It opened lower, but gained later in the day. On Tuesday, the currency had touched its lowest closing level in April at 44.2250 against the dollar.

The currency opened the day at 44.19 and touched an intra-day high of 44.11. A dealer in a PSU bank said, "The rupee may touch 44.50 levels in a few weeks' time. Internationally, the dollar has gained and this may be reflected in the local markets on Thursday."

The discount in the forwards market reduced on Wednesday, with bankers doing sell-buy swaps. The six months forward closed at - 0.10 per cent (- 0.32 per cent) and the one-year closed at - 0.02 per cent (- 0.14 per cent).

Bond prices gained some lost ground buoyed back by the ample liquidity in the system.

The 8.07 per cent 2017 paper closed at Rs 124.55/58 levels as against Rs 124.47. The 7.37 per cent 2014 paper Rs 117.48 (Rs 117.53/54).

Call rates remained in the 4.25 per cent range in the inter-bank market. Meanwhile, in the seven-day repo under LAF, RBI received and accepted 40 bids amounting to Rs 13,135 crore which were accepted at the rate of 4.50 per cent.