The Hindu Business Line : Rupee steady; bonds edge up

MUMBAI: The rupee closed almost unchanged against the US dollar on Thursday, though there was good demand for dollars from corporates, dealers said.

It opened at 45.26/28 and touched a low of 45.34 before ending marginally lower at 45.30, against the earlier close of 45.28/29.

The chief forex dealer with a private bank said some corproates started selling dollar at 45.34, keeping the rupee from falling further. Trading volume was thin as many corporates were closed for Diwali holidays. Stock markets were also closed.

The forward market was also almost unchanged with the six-month premium closing at 0.45 per cent (0.43 per cent) and the one-year premium at 0.42 per cent (0.41 per cent).

Volumes in the bond market were thin. Overall bond prices increased by 5-8 paise, due to slightly lower inflation, said dealers.

The inflation figures released towards the end of trade showed a slight decline in headline inflation to 4.49 per cent from 4.71 per cent in the previous week.

The 7.37 per cent-9-year-2014 paper opened at Rs 102.52 (6.97 per cent YTM) and closed at Rs 102.59 (6.96 per cent YTM), higher from the earlier level of Rs 102.49 (6.97 per cent YTM).

The 10.25 per cent-16-year-2021 paper opened at Rs 125.53 (7.45 per cent YTM) and ended trade at Rs 125.59 (7.44 per cent YTM) against Wednesday's close of Rs 125.51 (7.45 per cent YTM).

Call rates closed at 5.30 per cent (5.40/45 per cent). In the one-day reverse repo, under the liquidity adjustment facility, the RBI received and accepted 15 bids amounting to Rs 8,250 crore. In the CBLO market, there were 294 trades for Rs 13,315.70 crore in the rate range of 5.15-5.50 per cent.

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