The Hindu Business Line : Rupee tad weaker; gilts move up

MUMBAI: The rupee touched a low of 45.9750 against the US dollar during Thursday's session but recovered later to end at 45.86/88. The Indian currency had closed at 45.8550/8650 on Wednesday.

The rupee opened weaker today as the dollar had strengthened overseas on better than expected US trade data. This coupled with a demand for dollars from corporates, oil companies and banks that were short of dollars pushed down the rupee, dealers said. Forwards were range bound tracking the rupee movement, dealers said. The six-month forward finished at 1.70 per cent (1.52 per cent) while the twelve-month forward closed at 1.45 per cent (1.40 per cent).

Bond prices witnessed some buying interest towards closing hours with prices rising about 15 paise as the comments of Deputy Governor RBI, Dr Rakesh Mohan lifted sentiment in the market, said dealers.

The 11-year benchmark 7.38 per cent 2015 paper finished higher at Rs 109.65 with the yield at 6.16 per cent. The yield on the paper finished at 6.17 per cent on Wednesday. The 10-year benchmark 7.37 per cent 2014 paper moved in a range of about 10 paise, closing at Rs 109.

Call rates were easy in the range of 4.30-4.50 per cent with enough liquidity in the market, they said. Under the LAF window the RBI received and accepted 50 bids in the one-day repo and 6 bids in the 7-day repo worth Rs 24,970 crore and Rs 670 crore respectively.

In the CBLO market, 109 trades worth Rs 3,951.55 crore were transacted in the range of 4.20-4.50 per cent.