The Hindu Business Line : Rupee down 18 paise; securities weaken

The central bank was seen supporting the rupee at 45.80/82 levels through State-run banks. Dealers said the public sector banks were active on both the buying and selling side of the market.

Corporates, including oil companies, were buying dollars in the market. However, in the early hours of trading, foreign banks had been seen selling dollars.

Market players opine the banks were nervous to enter the non deliverable funds (NDF) market today as the RBI has demanded a clear indication of their positions in this area.

The dollar-rupee market will remain choppy in the range of 45-45.60 for a few days to come, say dealers.

The wait and watch mood in the market awaits a clear signal from the Budget.

The Budget is likely to give direction to forex inflows into the country.

The forwards were into premia, with the six-month forward closing at 1.08/10 per cent (1.40 per cent). The one-year forward closed at 0.95 per cent (0.91/93 per cent).

Bond prices again crashed for the third time during the week by about a rupee across maturities.

The market witnessed low trading volumes of about Rs 3,500 crore and lack of buying support by public sector banks.

Bonds opened higher by about 80 paise on news that crude oil prices may come down, but prices fell later on account of profit booking. Primary dealers, foreign banks and private sector banks experienced selling pressure.

The benchmark 7.37 per cent 2014 paper opened at Rs 112.60 and closed 85 paise lower at Rs 111.75 at an yield of 5.77/78 per cent. The 8.07 per cent 2017 paper opened at Rs 118.00/25 and closed about a rupee lower at Rs 117.00/10.

Dealers expect the market to be range-bound on Friday with a lot depending on inflation figures.

In the LAF window, the RBI received 40 bids worth Rs 8,510 crore, all of which were accepted at the repo rate of 4.5 per cent.