The Hindu Business Line : Rupee ends flat; bonds steady

MUMBAI: The rupee ended fairly unchanged on Friday at 45.87/88 per dollar after it had reached a low of 45.9250 on the back of substantial demand for dollars, dealers said. The currency had finished at 45.86/88 on Thursday.

Forwards ended a shade higher, dealers said. The six-month forward closed at 1.75 per cent (1.70 per cent), while the twelve-month forward closed at 1.50 per cent (1.45 per cent).

Bond prices moved in a 10-paise band with a `knee-jerk reaction' of prices falling marginally as inflation data came higher than expected at 7.81 per cent, dealers said. The inflation number was expected at 7.68 per cent.

The Government securities closed more or less the previous levels. The 11-year benchmark 7.38 per cent 2015 paper ended at Rs 109.65 at a yield of 6.14 per cent. The 10-year 7.37 per cent 2015 paper closed at Rs 109.10 at a yield to maturity (YTM) of 6.09 per cent.

Market participants are in a wait-and-watch mode ahead of announcement of the Government's borrowing programme on Monday. They expect a shortfall in the borrowings and are not taking major positions ahead of the auction calendar.

Call rates were slightly tight at 4.45-4.55 per cent. Under the LAF window, the RBI accepted all four bids received in the 7-day and all 39 bids received in the 3-day repo auction worth Rs 590 crore and Rs 14,555 crore respectively.

In the CBLO market, 124 trades worth Rs 3,582.35 crore were transacted in the rate range of 4.45-4.75 per cent.