The Hindu Business Line : Rupee range-bound; bonds stay flat

MUMBAI: The rupee remained range-bound against the dollar and ended a shade higher than Wednesday' close. It opened at 43.5350/5450, hit an intra-day high of 43.4950/50 and finally ended the day at 43.52/53.

A dealer at a private bank said that with the euro and the sterling down, the rupee could have depreciated even further. In the forward premia market, the premia slipped further. The six-month premium closed at 1.26 per cent (1.30) and the 12-month ended at 1.18 per cent (1.28). Dealers said that there has been a cash dollar shortage. The bond market remained flat, as prices fell marginally and volumes were low. A dealer at a private bank said, "There was profit-booking as well as some concern about the price of crude, which was relatively higher at $51. There has been no trigger for the market to sway in an upward or downward direction."

The market is now awaiting the Rs 10,000-crore auction, which is scheduled for the first week of June. The 8.07-12 year-2017 paper opened at Rs 107.80 (7.07 per cent YTM) and closed at Rs 107.65/70 (7.09 per cent YTM), down from Wednesday's close at Rs 108.12 (7.03 per cent YTM).

The 7.38-10 year-2015 benchmark paper was dealt at Rs 103 (6.96 per cent YTM), lower than Wednesday's Rs 103.40 (6.91 per cent YTM). Call rates fell to close at 3.75-4.00 per cent ahead of `reporting Friday.' In the one-day reverse repo auction under the Liquidity Adjustment Facility, RBI received and accepted 43 bids, amounting to Rs 29,015 crore. The CBLO market saw 151 trades being put through in the rate range of 2.75-5.00 per cent, aggregating to Rs 5,177.40 crore.

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