The Hindu Business Line : Rupee up 2 paise; gilts range-bound

The high observed during the day was 45.0150 and the low was 45.1350 against the greenback. There were some heavyweights in the market, said dealers. RBI is said to have supported the rupee throughout the day at over the level of 45.00.

The forward markets remained choppy on account of a cash crunch triggered by a high dollar demand in the spot market. Premiums fell because of profit taking. The six-month forward closed in 1.50 paise premium at 0.06 per cent (0.02 per cent) and the 12-month forward closed in 6.25 paise premium at 0.14 per cent (0.08 per cent).

The bond market was jittery but prices were range-bound in a band of 10-15 paise. The primary dealers were building up fresh positions and were buyers along with the private banks. PSU banks remained sellers in the market.

The 8.07 per cent 2017 paper opened at Rs 121.70, moved up to Rs 121.93 before closing lower at Rs 121.5860 with YTM 5.65 per cent.

The new addition to the g-sec market, the 5.59 per cent 2016 paper, opened at Rs 100.50, rose to Rs 100.72 before closing lower at Rs 100.38/40 with YTM 5.54 per cent. The 6.25 per cent 2018 paper opened at Rs 104.75 touched Rs 104.90 before closing at Rs 104.63, the 7.49 per cent 2017 paper opened at Rs 116.30, went up to Rs 116.70 before closing lower at Rs 116.25/30.

Inter-bank call rates remained steady at 4.25 - 4.50 per cent. Under the liquidity adjustment facility (LAF), RBI accepted 41 bids worth Rs 11, 250 crore at the rate of 4.50 per cent.