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Mumbai: THE rupee slipped to another all-time intra-day low at 48.97 before recovering to close stronger at 48.92/9250 per dollar, as compared to previous close of 48.9450, in a volatile forex market.

Forex dealers said that the rupee was driven down in the morning following demand for the greenbacks from nationalised banks. "As soon as nationalised banks were seen buying dollars, foreign banks followed suit and this caused the currency to slip. But there were bunched up dollar supplies which came in later and led the rupee to close stronger.''

Meanwhile, forwards closed softer with the six-month premium ending at 6.17 per cent (6.23 per cent) and the premium for one-year ending at 5.61 per cent (5.63 per cent).

Bond prices lost around 15 paise in some maturities in a lacklustre day's trade in the Government securities market.

Dealers said, that the market was being cautious and players were refraining from taking active positions after news came in that the Government has converted two special papers lying with the RBI into normal securities. The two papers are the 7.37 per cent 2014 and the 7.49 per cent 2017.

"There is an expectation that the RBI may come out with another OMO shortly and mop up liquidity,'' said a bond dealer with a private sector bank.

Call rates hovered in the 6.50 per cent range in the inter-bank market. Meanwhile, in the one-day repo under the LAF, the RBI received and accepted four bids amounting to Rs 2,510 crore, which it accepted at the rate of six per cent.

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