The Hindu Business Line : Rupee rises further; g-secs see gains

MUMBAI: The rupee strengthened further against the US dollar on Wednesday on the back of strong inflows. The rupee opened at 43.52/53 and closed firm at 43.49/50, up from 43.5425 on Tuesday.

A dealer at a private bank said, "Many companies are now coming out with ADRs. So, there is a strong dollar inflow". The forward premia market too saw a rise, with the six-month premium closing at 1.2 per cent (1.05) and the 12-month at 1.23 per cent (1.05).

Prices rose in the bond market as the US yields fell. Bond prices rose by 50 paise to Rs 1 in intra-day trade. Other factors that aided the bond market were expectations that inflation would likely be soft in the days ahead and crude prices could fall.

The 7.55 5-year 2010 paper opened at Rs 104 (6.79 per cent YTM) and closed at Rs 104.10 (6.56 per cent YTM) against Tuesday's level of Rs 103.80. The most active stock, 7.37 9-year 2010 paper closed at Rs 103.95 (6.77 per cent YTM) against Tuesday's level of Rs 103.81 (6.86 per cent YTM). It had opened at Rs 103.80 (6.79 per cent YTM) and touched an intra-day high of Rs 104 (6.79 per cent YTM).

The call market closed at in the 5-5.10 per cent range.

In the one-day reverse repo auction RBI received and accepted 37 bids amounting to Rs 18,095 crore.

The CBLO market saw 120 trades being put through in the rate range of 4.89 to 5.12 per cent, amounting to Rs 4408.90 crore.

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