The Hindu Business Line : Rupee declines; securities dull

MUMBAI: The rupee closed at 43.74/75 against the US dollar on Friday, slightly lower than Thursday's close of 43.71/71.50, as traders bought dollars to square up their position prior to the weekend.

According to dealers, it was a shallow market, with stray demands.

According to a dealer at a private broking house, "There was some FII inflow in the early trade, that is why the rupee gained a bit in the morning. But for the major part of the day, the rupee traded in a tight range. There was not much enthusiasm in the market."

The forward premia market was steady, with the 12-month premium closing at 1.47/50 (1.45) and the 6-month premium closing at 1.70 (1.67).

The bond market was flat as inflation for the week was as most players preferred to wait for the US payroll data, due later on Friday, said dealers.

Another reason was that inflation was as expected at 4.83 per cent.

A dealer at a private broking house said, "The inflation was already factored in. So, there was no impetus for the market. People were also waiting for the US data, which will come later."

The bond market too was dull, with the 7.38 per cent 10-year benchmark paper closing at Rs 105.67 (6.62 per cent YTM) on Friday, against Thursday's close of Rs 105.60/65 (6.62 per cent YTM). The 10-year benchmark had opened at Rs 105.75 (6.61 per cent YTM).

A dealer said, "There were no major buyers or sellers. Most players took trading positions. We will see some action only in April, as that is when Government will begin borrowing."

The inter-bank call rates opened at 4.25-4.60 per cent and closed at 4.25-4.50 per cent.

In the one-day repo/reverse auctions, RBI received and accepted 53 bids worth Rs 41,005 crore.

In the CBLO market, 121 trades aggregating Rs 3431/45 crore was put through in the rate range of 1.25 to 4.60 per cent.

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