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MUMBAI: The rupee closed higher against the dollar as there was no demand for the greenback.

The rally in the domestic equity market also helped the rupee.

The domestic currency opened at 45.80/84, touched a low of 45.87 and a high of 45.64.It closed at 45.68/69, around 10 paise higher than Thursday's level of 45.78.

"There was no cash demand today and only sellers were seen active in the market," said a dealer with a private bank.

The forward premia were stable, with the six-month ending at 0.53 per cent (0.44 per cent) and the 12-month closing at 0.45 per cent (0.43 per cent).

Next week, the rupee could touch 45.80 levels again on renewed dollar buying, dealers said.

Bond prices went up during the first half of the day as crude oil prices fell to $57 a barrel and US yields moved down substantially. However, some of the gains were erased, as inflation was higher than expected, said dealers.

Bond prices opened 10-15 paise higher. But inflation figures at 4.75 per cent (4.49 per cent) pulled the market down. However, bonds closed 4-8 paise higher from Thursday's level.

The 7.37 per cent 9-year-2014 paper opened at Rs 102.5 (6.97 per cent YTM) and closed at Rs 102.46 (6.98 per cent YTM), up from the previous level of Rs 102.39 (6.99 per cent YTM).

The 7.49 per cent 12-year-2017 opened at Rs 101.55 (7.28 per cent YTM) and closed at Rs 101.49 (7.29 per cent YTM), up from the earlier level of Rs 101.43 (7.30 per cent YTM).

Call rates higher: Call rates continued to be higher and were even dealt at 7.25 per cent before closing at 6.75 per cent (5.96 per cent).

In the three-day reverse repo, under the LAF, the RBI received and accepted 7 bids amounting to Rs 1,500 crore and in the three-day repo auction RBI received and accepted 10 bids amounting to Rs 2,440 crore.

In the CBLO market, there were 368 trades for Rs 11,169.30 crore in the rate range of 5.9-7.2 per cent.

(This article was published in the Business Line print edition dated November 12, 2005)
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