The Hindu Business Line : Rupee tad firmer; gilts lacklustre

MUMBAI: The rupee closed marginally stronger at 43.71/72 per dollar in the domestic forex market on Wednesday as against its previous closing at 43.74/75.

Dealers said the domestic currency was largely tracking the movements of a strong dollar overseas. After opening at 43.68, the rupee firmed up to 43.76 and it came down to settle at its closing levels. In the forwards market, the six-month premium closed at 2.35 per cent (2.30 per cent), while the one-year premium closed at 1.86 per cent (1.85 per cent).

Bond prices moved in a 10-paise band in a largely lacklustre Government securities market. The benchmark ten-year paper — the 7.38 per cent 2015 — got dealt to a high of Rs 105.10 (6.70 per cent yield to maturity/YTM) before closing at Rs 104.70 (6.75 per cent YTM).

Dealers said there was no fresh buying interest and traders were, in fact, trying to offload positions. Call rates were in the range of 4.60 per cent to 4.50 per cent in the inter-bank market.

In the one-day reverse repo under the liquidity adjustment facility, RBI received and accepted 35 bids amounting to Rs 20,325 crore. In the collateralised borrowing and lending operations market, 145 trades were conducted, clocking volumes of Rs 5,183.30 crore in the rate range of 4.15 per cent to 4.82 per cent.

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