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MUMBAI: Amid concerns of rising crude oil prices and rumoured FII outflows, the rupee touched an intra-day low of 43.70 to the dollar, its lowest level in two weeks, before recovering to close stronger at 43.65/66 on Friday. The domestic currency had closed at 43.6550/66 on Thursday. According to a dealer with a private bank, there was some panic covering of dollar positions by oil companies and banks, which were sitting short.

The forward premia market saw some upward movement, with the 6-month premium closing at 1.56 per cent (1.47 per cent) and the 12-month at 1.37 per cent (1.30 per cent).

The bond prices gained by around 30 paise despite concerns on crude oil price fluctuations and higher inflation data. Inflation for the week ended Friday was 5.30 per cent.

The 7.38 per cent, 10-year benchmark closed at Rs 105.43 (6.65 YTM) against Thursday's close of Rs 105.10 (6.69 YTM). It had opened at Rs 105.15 (6.69 YTM).

A dealer at a private broking house said, "The bond market opened higher than Thursday's close due to a marginal easing in global crude prices. It later went down on the higher inflation data."

However, the market recouped gains as it had already discounted higher inflation figures to a large extent, dealers said.

The dealer added, "The market is nervous because people expect crude oil to touch $60. A further fall in bond prices is likely. Traders are scared about taking long positions."

Call rates surged to a high of 6 per cent amid a slight tightening in the liquidity. A dealer said, "Most market participants were rushing to cover products today being reporting Friday."

In the CBLO market, 162 trades, aggregating Rs 4,467.45 in the rate range of were put through in the rate range of 2 to 6.30 per cent.

In the one-day repo/reverse auctions, the RBI received and accepted 46 bids worth Rs 31,545 crore.

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