The Hindu Business Line : Rupee in range; bonds prices fall

MUMBAI: The rupee closed at 43.75/76 against the dollar on Wednesday.On Tuesday, it closed at Rs 43.78. It opened at 43.76, as the dollar weakened against the Euro overnight, said a dealer with a private bank. The Euro bounced from the levels of $1.28-1.29 against the dollar, which helped the rupee open stronger.

The dealer said, "The range is too narrow to justify any reason. . There was buying of dollars whenever the rupee dipped below 43.75 and selling whenever the rupee went above 43.76. But on the whole it was a dull day."

In the forward premia market, the 12-month premium closed at 1.48 per cent (1.50 per cent) and the 6-month premium closed at 1.77 per cent (1.86 per cent).

The bond prices fell by around 60 paise as concerns over the domestic petrol and diesel hike fuelled selling.

The 10-year 7.38 per cent 2015 benchmark paper closed at Rs 104.1050 (6.82 per cent YTM). It had opened at Rs 104.60 (6.76/77 per cent YTM).

A dealer at a private bank said, "The news of the possible hike in petrol and diesel prices triggered selling. Three private banks were continuously selling."

The CBLO market saw 173 trades aggregating Rs 5,921.10 crore. This was put through in the rate range of 4.42 to 5.00 per cent. Call rates closed at 4.75/80 per cent. In the one-day reverse repo under the liquidity adjustment facility, the RBI received and accepted 34 bids amounting to Rs 31,165 crore.

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