The Hindu Business Line : Rupee in range; securities gain

MUMBAI: The rupee gained slightly against the dollar on Wednesday. It opened at 43.89 and moved between 43.90 and 43.95 during the day. It ended at 43.90, a shade higher from Tuesday's close of 43.91.

Dealers said that some dollar buying drove the rupee to an intra-day low of 43.95, but the home currency recovered on foreign institutional investment inflows to the tune of $97 million.

In the forward premia market, the 12-month premium closed at 0.6 per cent (0.68 per cent) and the 6-month premium ended at 0.55 per cent (0.65 per cent). Dealers said that exporters' selling in the market had caused the premia to fall.

Bond prices went up by around 5-10 paise, as US yields softened and also on account of buying of long papers by LIC.

LIC was seen buying papers such as the 7.42 30-year 2035 and 7.50 29-year 2034, said market sources.

The 10.25 per cent 16-year 2021 paper opened at Rs 126.42 (7.38 per cent YTM) and closed at Rs 126.49 (7.37 per cent YTM), up from Tuesday's level of Rs 126.36 (7.38 per cent YTM). The 5.69-13 year-2018 paper opened at Rs 87.31 (7.20 per cent YTM) and closed at Rs 87.36 (7.20 per cent YTM), marginally higher than the earlier level of Rs 87.29 (7.2099 YTM). The 7.37 per cent 9-year 2014 paper opened at Rs 102.57 (6.97 per cent YTM) and closed at Rs 102.60 (6.96 per cent YTM).

Call rates were dealt at 4.95-5.05 per cent (4.9-5.05 per cent) level. In the one-day reverse repo auction, the RBI received and accepted 48 bids amounting to Rs 46,975 crore. In the CBLO market, there were 232 trades for Rs 8,365.90 crore in the rate range of 4.7-4.9 per cent.

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