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Our Bureau

MUMBAI: The rupee ended at 43.64/65 against the dollar on Wednesday, higher from the previous close of 43.72

According to dealers, this was mainly because the euro and sterling appreciated against the greenback overnight. There was also a fair amount of FII inflows, which helped the rupee's upward movement, dealers said.

On Wednesday, the rupee opened at 43.66/67. It touched an intra-day low of 43.67/68 and a high of 43.63/64 against the dollar.

There was only a 5 paise movement as the rupee traded in the range of 43.63 and 43.68 paise, said a dealer with a private broking firm.

"Today, there was no major intervention by the RBI, which usually buys through State-run banks. Even the impact of oil price rise, which is around $55 per barrel, will not be felt immediately," the dealer said.

He added, "The rupee is likely to appreciate as more FII inflow is expected. But, RBI is expected to slow down the appreciation of the rupee, in order to safeguard exporters. We can say this judging by the narrow range of the rupee's movement.

"For instance, between March 1 and 4 the rupee was between 43.69 and 43.72 against the dollar."

In the forward premia market, the 12-month premium traded between 1.25 and 1.27 per cent (1.55 and 1.65 per cent) and the 6-month premium was between 1.47 and 1.52 per cent (1.3 and 1.35 per cent).

Bond market was also down on worries of oil price rise.

The 7.38 per cent 10-year benchmark paper closed at Rs 106.25 (6.55 per cent YTM) on Wednesday, lower than previous close of Rs 106.50 (6.35 per cent YTM).

The 10-year benchmark paper had opened at Rs 106.15 (YTM 6.56 per cent).

A dealer at a private broking house said, "The 10-year benchmark had opened 30 paise down in the morning. Thereafter, buying by foreign banks and primary dealers pushed it by 20 paise."

The dealer said he expected the pressure on the yields to ease, as inflation is under control and oil may edge down from $55 per barrel levels.

"There could be buying for valuation purposes as it is close to the annual closing. This could also ease the pressure on the yields," he said.

The inter-bank call rates were between 4.70 per cent and 4.50 per cent.

In the one-day repo/reverse auctions, RBI received and accepted 47 bids worth Rs 31,265 crore.

In the CBLO (Collaterised Borrowing and Lending Obligations) market 145 trades, aggregating Rs 4,662.05 crore were put through in the range of 3.54-5 per cent.

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