The Hindu Business Line : Rupee recovers; bond prices up

The currency, which opened at 43.82/83, hit an intra-day low of 43.8350. The forward premia market slipped further, with the six-month premium closing at 1.60 per cent (1.66) and the 12-month premium closing at 1.35 per cent (1.44). Dealers said there was a lot of receiving by importers on account of the rollover of contracts.

Bond prices rose by around 30 paise on account of banks buying securities before the end of the fiscal year.

The 7.38-per cent 10-year benchmark paper closed at Rs 105.20/30 (6.67 per cent YTM) against Tuesday's close of Rs 105.00 (6.66 per cent YTM). It had opened at Rs 105.30/35 (6.66 per cent YTM).

A dealer at a private bank said, "There is about Rs 39,500-crore liquidity in the market. For the past three days, nationalised banks have been buying securities to soak up liquidity."

The CBLO market saw an all-time high of 122 trades, aggregating Rs 7,615 crore. This was put through in the rate range of 1 to 4.95 per cent. Call rates closed at 4.50/75. In the one-day reverse repo under the Liquidity Adjustment Facility, RBI received and accepted 46 bids, amounting to Rs 39,500 crore.

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