The Hindu Business Line : Rupee falls as banks go aggressive on $

"While the exact reasons for the dollar buying are not apparent, there seems to be a certain target for the rupee versus the dollar. Large FII inflows expected in the coming days as well as an effort to shore up dollar reserves before March, may be some of the reasons for the trend," said the dealer.

The forwards closed lower by 5 paise, with the six-month finishing at 1.3 per cent (1.5 per cent) and the 12-month at 1.2 per cent respectively (1.4 per cent).

There was a slight shift in the gilts market where security prices came down modestly from Monday's levels.

The benchmark 7.38 per cent 10-year paper ended at 6.51 per cent, down a shade from Monday's 6.50 per cent.

A dealer with a public sector bank said liquidity was comfortable with Rs 16, 205 crore being put through in the reverse repo.

The call rates held steady in the 4.60-4.80 per cent range. According to the dealer, some private banks were active borrowing overnight money. In the CBLO market, 103 trades aggregating Rs 3,252.15 crore were put through in the rate range of 4.60-4.75 per cent.

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