The Hindu Business Line : Rupee moves up; bonds firmer

MUMBAI: The rupee appreciated against the greenback in tandem with other major currencies on Friday and on the back of good inflows seen during the week.

The domestic currency opened at 45.08 and touched an intra-day low of 45.2250. It closed the day at 45.1550, up from Thursday's 45.20.

In the forward premia market, the 6 month ended at 1.14 per cent (1.18) and the 12-month ended at 0.90 per cent (0.89).

In the bond market, there was a rise in the prices due to a slight improvement in liquidity. Dealers said that traders were not ready to take any position until the IMD redemption comes through.

A dealer at a private bank said that the prices could rise early in January with improvement in the liquidity.

The 8.07 12-year 2017 paper opened at Rs 106.35 (7.22 per cent YTM) and closed at Rs 106.435 (7.21 per cent YTM), up from Thursday's Rs 106.32 (7.23 per cent YTM) The 10.25 16-year 2021 paper opened at Rs 126.14 (7.38 per cent YTM) and ended at Rs 126.19 (7.38 per cent YTM), higher than Thursday's close at 126.095 (7.39 per cent YTM).

The call rate closed at 5.30/40 per cent (5.50/60). In the three-day reverse repo auction, RBI received and accepted two bids amounting to Rs 150 crore, and 5 bids for Rs 1,330 crore in the repo auction.

In the second three-day reverse repo auction, the bank received 16 bids for Rs 7,220 crore, and one bid for Rs 170 crore in the repo auction. In the CBLO market, there were 367 trades for Rs 14,117.55 crore in the range of 4.25 -6.40 per cent.