The Hindu Business Line : Rupee firmer; g-secs rally

The rupee opened higher at 43.5250/53, up from Monday's closing at 43.57/58. It fell to 43.55 on dollar buying by some foreign banks, and finally closed at 43.5425.

In the forward premia market, there was a slight fall as the six-month ended at 1.05 per cent (1.10 per cent) and the 12-month closed at 1.05 per cent (1.10 per cent).

In the bond market, the prices rallied after the RBI Governor made a statement that core inflation has been low.

A dealer at a private bank said, "After the successful auction of bonds worth Rs 10,000 crore on Monday, there is one more auction of Rs 5,000 crore in June. The liquidity in the market is comfortable and hence sentiment is upbeat."

The 7.37-9 year-2014 paper opened at Rs103.10 (6.89 per cent YTM) and closed at Rs 103.55 (6.82 per cent YTM), up from Monday's close at Rs 103.05 (6.90 per cent YTM).

The 7.38-10 year-2015 benchmark paper opened at Rs 103.45 (6.90 per cent YTM) and closed at Rs 103.81 (6.86 per cent YTM).

The call rate was slightly higher at 5-5.10 per cent (4.90-5 per cent). In the one-day reverse repo auction, under the Liquidity Adjustment Facility, the RBI received and accepted 37 bids, amounting to Rs 20,900 crore. The CBLO market saw 140 trades being put through in the rate range of 2.96-5.10 per cent, aggregating Rs 3,789.80 crore.

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