The Hindu Business Line : Rupee weaker; gilts in range

MUMBAI: The rupee closed at 43.46/47 per dollar in the domestic forex market on Friday, around 5 paise weaker than its closing on Thursday at the 43.42 levels.

After opening at 43.47, the rupee slipped to an intra-day low of 43.53/54 on the back of good dollar buying across the board by those who had kept short-dollar positions in the previous day, dealers said.

When the rupee touched its low, there was some amount of selling by State-run banks, propping the currency back to its closing levels.

In the forwards market, the six-month premium ended almost unchanged from its previous closing at 2.10 per cent while the one-year premium ended at 1.75 per cent (1.84 per cent).

Bond prices remained range-bound in a lacklustre government securities market.

The dealers said the market was devoid of any trading interest and most traders were refraining from building positions.

The benchmark 7.38 per cent 2015 paper got dealt up to Rs 104.95 at 6.73 per cent yield to maturity as against its previous levels at 6.72 per cent YTM. Call rates remained steady at 4.75 per cent.

Meanwhile, in the three-day reverse repo under the LAF, the RBI received and accepted 35 bids, amounting to Rs 21,170 crore, at the rate of 4.75 per cent. In the CBLO market, 142 trades were conducted, amounting to volumes of Rs 5,380.30 crore in the rate range of 3.75 per cent to 4.75 per cent.

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