The Hindu Business Line : Rupee sheds early gains; bonds rise

The rupee opened at 43.72/73 and touched an intra-day high of 43.66, when rumours of the revaluation hit the market. However, after Chinese central banks officials dismissed the rumours, the rupee fell to close at 43.6850/6950, higher than Thursday's close at 43.70/71.

A dealer at a private bank said exporters were seen selling dollars. In the forward premia market, the 12-month ended at 0.67 per cent (0.73) and the 6-month closed at 0.59 per cent (0.75).

In the bond market, prices went up by 8 paise. A dealer at a private bank said, "The fact that there is no auction until next month improved sentiment in the market. Though the price of crude, which is hovering between $66 and $68 is still a concern, a hike in domestic fuel prices will not happen until next week."

Domestic inflation which was at 3.13 per cent, down from last week's 3.35 per cent caused prices to go up by 3 paise.

The 7.37-9 year-2014 paper opened at Rs 102.08 (7.04 per cent YTM) and closed at Rs 102.16 (7.03 per cent YTM), up from Thursday's Rs 102.02 (7.05 per cent YTM).

The 10.25 - 16 year-2021 paper opened at Rs 125.46 (7.47 per cent YTM) and closed at Rs 125.56 (7.46 per cent YTM), higher than Thursday's Rs 125.42 (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 Thursday.

The call rate closed at 4.90-5 per cent (4.90-5).

In the three-day reverse repo auction, the RBI received and accepted 41 bids amounting to Rs 25,435 crore.

In the CBLO market, there were 218 trades for Rs 9,062.75 crore in the rate range of 4.60-5.05 per cent.

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