The Hindu Business Line : Rupee tad higher; bond lacklustre

The strengthening of the yen against the dollar also helped the rupee to edge up after opening at 43.69. Volumes in the forex market have been subdued for over a week now, as the market is waiting for some kind of a trigger in the monetary policy. However, dealers ruled out any liberalisation policy or freeing of the rupee by RBI.

The forward premia market was dull, with the 12-month premium trading at levels of 1.45 per cent (1.47 per cent) and the six-month premium trading between 1.69 per cent and 1.70 per cent (1.65 per cent).

The bond market too was range-bound with an upward bias, according to the dealers. The 7.38 per cent 10-year-2015-benchmark paper was almost inactive. On Wednesday, it closed at Rs 101.90 (7.11 per cent yield to maturity/YTM), higher than Tuesday's close of Rs 101.86 (7.12 per cent YTM). The 8.07 per cent 12-year-2017 paper, which is currently the most actively traded paper, closed a tad higher at Rs 104.97 (7.43 per cent YTM) against Tuesday's close of Rs 104.65/70 (7.47 per cent YTM). Call rates were between 4.78 and 4.80 per cent. In the one-day reverse repo under the liquidity adjustment facility, RBI received and accepted 39 bids amounting to Rs 39,610 crore. The CBLO market saw 161 trades aggregating Rs 6,525.45 crore in the rate range of 4.56 to 4.70 per cent.

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