The Hindu Business Line : Rupee firms up; bonds in range

MUMBAI: Buoyed by substantial dollar supplies, the rupee closed stronger against the greenback at 43.68/69 per dollar on Thursday against its previous closing at 43.7250/7350 on Wednesday.

The domestic currency opened at 43.74/75 and strengthened to an intra-day high of up to 43.65. The forwards market saw some good paying interest primarily led by foreign banks. The six-month forward closed higher at 1.61 per cent (1.45 per cent), while the one-year forward closed at 1.43 per cent (1.30 per cent).

Bond prices remained range-bound amid thin volumes in a lacklustre Government securities market.

Most traders are of the view that they would not like to build big positions ahead of the Budget. The 7.38 per cent 2015 paper ended at Rs 106.68/70 at 6.50 per cent yield to maturity. The paper closed at Rs 106.60 on Wednesday.

In the one-day reverse repo under the liquidity adjustment facility, RBI received and accepted 40 bids amounting to Rs 26,030 crore at the rate of 4.75 per cent.

Call rates remained steady between 4.75 per cent and 4.80 per cent. In the CBLO market, 144 trades were conducted, amounting to volumes of Rs 5,291.60 crore in the rate range of 4.50-4.83 per cent.

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