The Hindu Business Line : Rupee declines; securities gain

A dealer at a private bank said that there was importer-related demand for dollars. However, there was some dollar-selling at the low of 45.87, which helped the rupee recover before closing.

In the forward premia market, the six-month closed at 0.54 per cent (0.52-0.56) and the 12-month at 0.44 per cent (0.42-0.45).

In the bond market, prices went up by around 10 paise due to improved liquidity in the system.

In the one-day reverse repo, under the liquidity adjustment facility, the RBI received and accepted 14 bids amounting to Rs 7,075 crore.

Dealers said the announcement of the Rs 5,000-crore Government auction on Thursday reduced uncertainty and prompted some buying in the market.

A dealer at a private bank said that the outlook for the bond market was not very positive with liquidity crunch still staying a concern.

The 7.49 per cent-12 year-2017 paper opened at Rs 101.66 (7.27 per cent YTM) and closed at Rs 101.85 (7.25 per cent YTM), up from Monday's Rs 101.65 (7.27 per cent YTM).

The 7.37 per cent - 9 year- 2014 paper opened at Rs 102.46 (6.98 per cent YTM) and ended at Rs 102.53 (6.965 per cent YTM) slightly higher than Monday's Rs 102.51 (6.96 per cent YTM).

The call rate touched 5.75-85 per cent during the day but closed at 5.30 per cent (5.40-50). In the CBLO market, there were 292 trades for Rs 12,397.35 crore in the range of 5.10-6 per cent.

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