The Hindu Business Line : Rupee closes firmer; bonds range-bound

The domestic currency opened at 43.71/72 and touched an intra-day low of 43.78. It then appreciated to 43.6850 on account of dollar selling. There was then some short-covering due to which the rupee finally closed the day at 43.70/71, up from Wednesday's 43.73/74.

Dealers said that the demand from oil importers caused the rupee to weaken to 43.78. As on Wednesday, the Reserve Bank of India is perceived to have intervened through some dollar selling by banks.

In the forward premia market, the 6-month premium was at 0.75 per cent (0.67) and the 12-month premium was at 0.75 per cent (0.73).

Bond prices opened 5-10 paise lower on account of crude prices flaring up to $67.3 per barrel.

However, the cut-off price of Rs109.60 (5.04 per cent YTM) of the auction of the 11.90 Government stock 2007 was as per expectation. The 7.37 per cent-9 year-2014 paper opened at Rs 101.95 (7.06 per cent YTM) and closed at Rs 102.02 (7.05 per cent YTM), one paise lower than Wednesday's closing. The 10.25-16 year-2021 paper opened at Rs 125.31 and closed at Rs 125.42 (7.47 per cent YTM), lower than Wednesday's Rs 125.45 (7.47 per cent YTM).

The 7.38-10 year-2015 benchmark paper was dealt at Rs 102.10 (7.08 per cent YTM), the same level as on Wednesday.

The call rate closed at 4.90-5 per cent (4.90-5). In the one-day reverse repo auction, the RBI received and accepted 39 bids amounting to Rs 29,060 crore. In the CBLO market, there were 188 trades for Rs 7,159.70 crore in the rate range of 4.70-5.10 per cent.

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