The Hindu Business Line : Rupee tad higher; gilts lacklustre

MUMBAI: The rupee ended marginally higher against the dollar at 43.74/75 on Thursday, against Wednesday's close of 43.79/80. There was a significant sell off in the dollar-rupee due to players taking positions at the close of the financial year, said the head of treasury of a private bank.

The rupee had opened at 43.80/81. The forward premia market opened lower and did not see much action due to the financial year-end. The 12-month premium closed at 1.33 per cent (1.35 per cent) and the six-month premium closed at 1.52 per cent (1.60 per cent).

In the bond market too, activity was slack and there were no significant volumes, said a dealer with a private bank. The 7.38 per cent 10-year benchmark paper closed at Rs 105.10 (6.68 per cent YTM) against Wednesday's close of Rs 105.20/30 (6.67 per cent per cent). It had opened at Rs 105.30/35 (6.67 YTM). It fell by about 30 paise during intra-day trade.

In the one-day repo under the Liquidity Adjustment Facility, RBI received and accepted 32 bids, amounting to Rs 19,330 crore. On Wednesday, the LAF amounted to Rs 39,500 crore. The inter-bank call rates closed at 4.60/65 per cent (4.50/75 per cent). During the day, it went up to 4.85/90 per cent and even to a low of three per cent, dealers said.

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