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Our Bureau

MUMBAI: The rupee weakened against the dollar on Monday as corporates, mainly oil companies, bought dollars.

The rupee was also dragged down because euro lost in value against the dollar in the international markets. The domestic currency opened at 43.53/54 against the US dollar and ended trade at 43.59/60, lower than Friday's close of. 43.53/54.

Dealers expect the rupee to weaken in the week ahead, as the market waits for the Infosys ADR inflows.

The forward premia market saw good interest, due to which the 12-month premium closed at 1.04 per cent (1.21 per cent), while the 6-month premium closed at 1.08 per cent (1.31 per cent).

The bond market opened at the same levels as on Saturday, then went down 5 paise due to the absence of any big buying support, but picked up later due to buying by insurance companies.

The 8.07-12 year 2015 paper opened at Rs 107.20 (7.14 per cent YTM). After this it fell to Rs 106.80 (7.20 per cent YTM). There was buying by LIC at this level, which pushed the bond price to Rs 107.45 (7.12 per cent YTM). It finally ended trade at Rs 107.30/35 (7.13 per cent YTM), almost unchanged from Saturday's close of Rs 107.35 (7.13 per cent YTM).

The 7.55 5-year 2010 paper opened at Rs 103.10/12 (6.80 per cent YTM), went up to Rs 103 (6.83 per cent YTM) and then closed at Rs 103.10/12 (6.80 per cent YTM), a shade lower than Saturday's close of Rs 103.15 (6.79 per cent YTM).

According to a chief bond dealer with a private bank the market is wary ahead of the Rs 10,000-crore auction which is expected to begin from June first week. So, there is no big buying. Most deals are only between Rs 5 crore and Rs 10 crore, the dealer said.

Call rates were stable between 4.95-5.05 per cent (5.05-5.10 per cent).

The CBLO market saw 158 trades being put through in the rate range of 4.85 to 5.10 aggregating to Rs 5,811.50 crore.

In the one-day reverse repo auction, under the Liquidity Adjustment Facility, the RBI received and accepted 37 bids amounting to Rs 20,275 crore.

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