The Hindu Business Line : Rupee in range; bonds volatile

MUMBAI: The rupee ended at 43.71/71.50 against the US dollar on Thursday, slightly higher than Wednesday's close of 43.70/71.5. Dealers said that the market was dull and directionless.

The rupee, which opened at 43.69.5/70 on Wednesday, rose to 43.63 in intra-day trade.

Traders said that there was some FII inflow, which pushed the rupee up slightly. The forward premia market was also dull, with the 12-month premium closing at 1.45 (1.50) and the 6-month premium closing at 1.67 (1.68) per cent.

The bond market continued to be volatile on fears of a rise in government spending. The 7.38 per cent 10-year benchmark paper closed at Rs 105.60/65 (6.62 per cent YTM) against Wednesday's close of Rs 105.60 (6.63 per cent YTM). The paper opened at Rs 105.45/50 (6.65 per cent YTM) and gained 25 paise during the day.

The interbank call rate ranged between 4.7 and 4.8 per cent (4.50 and 4.60 per cent). In the one-day repo/reverse repo auctions, RBI received and accepted 56 bids worth Rs 42,055 crore. In the CLBO market, 144 trades aggregating Rs 5132.75 crore was put through in the rate range of 2.1 to 4.70 per cent.

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