The Hindu Business Line : Rupee at 3-month high; securities range-bound

MUMBAI: The rupee strengthened against the dollar on Thursday to close at a three-month high on strong liquidity and speculation about revaluation of the Chinese yuan.

The rupee opened at 43.45/46, stronger than Wednesday's close of 43.48. It touched an intra-day high of 43.38.39 and ended at 43.40/41.

"The inflows are good right now. Talk of the yuan being revalued is also supporting the rupee," a dealer said.

The bond market was range-bound, with the 8.07 paper gaining about 5-10 paise. The 8.07 per cent, 12-year-2017 security, which is currently the active paper, opened at Rs 104.70 (7.40 per cent YTM). It touched Rs 104.85 in intra-day trade and ended at Rs 104.70, marginally down from Wednesday's close of Rs 104.77 (7.45 per cent YTM).

The 7.55 per cent 5-year, 2010 security opened at Rs 102.70 (6.90 per cent), touched Rs 102.85 (6.85 per cent) and ended at Rs 102.75 (6.89 per cent). On Wednesday, it had closed at Rs 101.15 (7.218 per cent YTM).

The 7.38 per cent 10-year benchmark finished trade at Rs 101.07 (7.23 per cent YTM) against Wednesday's close of Rs 101.15 (7.22 per cent YTM).

Call rates too were sluggish and traded between 5-5.05 per cent (5 per cent).

In the one-day reverse repo facility under the Liquidity Adjustment Facility, RBI received and accepted 41 bids amounting to Rs 24,615 crore. The CBLO market saw 171 trades amounting to Rs 5967.05 crore in the rate range of 4.80-5 per cent.

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