The Hindu Business Line : Rupee up 7 paise

MUMBAI: The rupee topped the 45-mark intra-day and closed seven paise higher on Monday at 45.0425/05, up from Friday's close of 45.11/12 against the dollar.

The steady appreciation in the rupee observed over the past week can be attributed to the actions of the central bank, said dealers. Except for the early hours of trading, when the currency came down sharply, it was steady throughout the day.

An analyst from a leading financial services firm said the RBI supported the rupee at 45.05 levels throughout the day. The rupee touched an intra-day high of 44.97 and a low of 45.0550. Dollar supply in the market was high, with foreign banks on a selling spree.

In the forward market, the discounts have come off as the six-month forward closed at 0.02 per cent (0.39 per cent), which moved into discount during the day, and the 12-month forward closed at 0.08 per cent (0.33 per cent). The 12-month forward had a sharp fall from 12 paise to 2 paise during the day. This was attributed to substantial exporter covering and the buy-sell interest shown by them due to the rupee strengthening and spots sliding.The bond market opened higher but closed lower due the negative sentiment ruling the market.

The longer tenor papers closed lower by about 50 paise. The 8.07 per cent 2017 paper opened at Rs 122.20 and slided to Rs 121.70 with a yield to maturity (YTM) of 5.64 per cent; the 7.46 per cent 2017 paper opened at Rs 117.00 to close lower at 116.50/55. The 7.49 per cent 2017 paper fell from Rs 116.75/80 to Rs 116.30/35. The new 5.59 per cent 2016 paper opened at Rs 101.05 and closed lower at Rs 100.50 with YTM of 5.53 per cent.

The call rates were steady at 4.40 to 4.50 per cent. By way of the liquidity adjustment facility, the RBI accepted as much as Rs 16,000 crore through 41 bids.