The Hindu Business Line : Rupee declines; bond prices up

The domestic currency opened at 43.4250/4350 against the dollar, moved down to 43.4750 and ended the day at 43.4350/40, lower than Thursday's close at 43.40/41.

The forward premia market saw a rise, with the 12-month premium closing at 1.35/37 per cent (1.27) and the 6-month premium ending at 1.57/60 per cent (1.42).

In the bond market, prices fell by 10-15 paise as the inflation rose to 5.91 per cent, up from last week's 5.64 per cent. The treasury head at a private bank said, "The market saw sellers outnumbering buyers on expectation of a higher inflation and after the release of the data there was a lot of selling."

The 8.07-7 year-2017 paper, which is currently active, opened at Rs 104.70(7.40 per cent YTM), hit an intra-day low of Rs 104.35 and bounced back to close at Rs 104.50 (7.48 per cent YTM).

The 7.55-5 year-2010 paper, which was auctioned recently, opened at Rs 102.80/82 (6.86 per cent YTM) touched a low of Rs 102.63 and finally closed at Rs 102.70(6.90 per cent YTM).

Call rate were in the 4.90-5 per cent range. In the one-day reverse repo, under the Liquidity Adjustment Facility, the Reserve Bank of India received and accepted 42 bids amounting to Rs 27,010 crore.

The CBLO market saw 176 trades amounting to Rs 6,666.35 crore in the rate range of 4.80-5.10 per cent.

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