The Hindu Business Line : Rupee tad lower; bond market dull

MUMBAI: The rupee traded a shade lower against the dollar on Monday as the US currency gained against the euro and yen and also on higher oil price, said dealers.

The domestic currency ended at 43.78/79 on Friday. It opened at 43.75/76 on Monday.

A considerable amount of inflows from FIIs as well as from export transactions also helped prop up the rupee, a dealer said. "There was bunching up of inflows over the last two days, being the fiscal year end. So, inflows were more today. This helped the rupee to some extent," he said.

Oil prices, which climbed to $58.11 for a barrel, also impacted the rupee to some extent, the dealer added.

The forward premia market did not see much movement due to fewer customer transactions. The 12-month premium closed at 1.39 per cent (1.33 per cent) and the 6-month premium at 1.68 per cent (1.52 per cent), he said.

The bond market, too, was down on fears of further rise in oil prices and was awaiting the underwriting price for the Rs 8,000-crore RBI auction scheduled for Tuesday, said dealers.

The 10-year-7.38-per-cent benchmark paper closed at Rs 104.63 (6.75 per cent YTM) against Friday's close of Rs 105.19/20 (6.67 per cent YTM). It had opened at Rs 104.80 (6.73 per cent YTM).

A dealer with a private bank said that the market undertone is bearish. "The inter-bank call rate was 4.7-4.8 per cent (4.60-4.65 per cent). In the one-day repo under the Liquidity Adjustment Facility, the RBI received and accepted 41 bids amounting to Rs 31,865 crore. In the CBLO market, 193 trades aggregating Rs 5682.90 crore were put through in the rate range of 4.12 to 5.5 per cent.

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