The Hindu Business Line : Rupee weaker; bonds decline

Dealers said the rupee's fall in value against the dollar for the second day was in line with the greenback's trend of strengthening against international currency majors over the past few days. " We can say that the rupee has become a truly global currency as it is in sync with international currencies," said a dealer with a private sector bank.

The US dollar has been gaining ground against the euro and the yen in particular, analysts said.

In the forwards market, the six-month premium ended at 1.20 per cent (1.96 per cent), while the premium for one-year ended at 1.55 per cent (1.50 per cent).

Bond prices slipped further on profit booking, with the ten-year benchmark yield hardening to 6.60 per cent levels against Wednesday's levels at 6.56 per cent. The 7.38 per cent 2015 paper closed lower at Rs 105.85/90 against yesterday's closing at Rs 106.23. The 9.39 per cent 2011 paper closed at Rs 114.80/85 at 6.55 per cent yield to maturity.

Call rates were easy at 4.70 per cent. In the one-day reverse repo under the LAF, RBI received and accepted 48 bids amounting to Rs 29,775 crore at the rate of 4.75 per cent.

In the CBLO market, 136 trades were conducted for an amount of Rs 3,251.35 crore, in the rate range of 4.01 per cent to 4.85 per cent.

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