The Hindu Business Line : Rupee firms up; gilts lacklustre

Dealers said that with the euro gaining by almost 80 basis points against the dollar, the rupee also followed suit. However, the domestic currency fell on the back of heavy demand for dollars.

A dealer at a private bank said that import as well as defence-related demand was seen in the market.

"Public sector banks like SBI were heavily buying dollars," said a dealer.

In the forward premia market, the 6-month closed at 0.8 per cent (0.85 per cent) and the 12-month ended at 0.65 per cent (0.67 per cent).

In the bond market, prices were flat during the day.

Dealers said that there was not much of buying interest in the market. "Traders were not taking any position today. Prices are now expected to rise only at the end of the month, with the end of the third quarter of the fiscal," said a dealer.

The 8.07-12 year-2017 paper opened at Rs 106.35 (7.23 per cent YTM) and ended at Rs 106.33 (7.23 per cent YTM), lower than Thursday's close of Rs 106.40 (7.22 per cent YTM).

The 10.25-16 year-2021 paper opened at Rs 126.22 (7.37 per cent YTM) and closed at Rs 126.15 (7.38 per cent), down from Thursday's Rs 126.29 (7.37 per cent YTM).

The call rate closed at 5.35-40 per cent (5.3 per cent).

In the first three-day reverse repo auction, the Reserve Bank of India received and accepted 13 bids amounting to Rs 6,335 crore. In the second auction, it received and accepted 29 bids for Rs 5,125 crore.

In the CBLO market, there were 265 trades for Rs 11,014.95 crore in the range of 5-5.40 per cent.

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