The Hindu Business Line : Rupee gains; gilts recoup

MUMBAI: The rupee gained two paise on Wednesday to end the day at 45.84/85 against the dollar in the local currency markets. Despite good dollar inflows by way of export receivables and some FII interest, there was good demand for greenback from corporates.

The central bank was not seen in the market. The market shows no damage from the Mumbai blasts of Monday and all are punting on the rupee appreciating further.

In the forwards market, the premia were seen softening with heavy selling by exporters. The six months forward closed at 1.48 per cent (1.68 per cent) and the one-year closed at 1.49 per cent (1.64 per cent).

In the Government securities market, prices fell by 20-40 paise in the early half of the day on profit booking but later revived. Traded volumes were capped at over Rs 9,100 crore.

Some well-traded papers were the 8.35 per cent 2022 paper, which closed previously at Rs 128.15/20, went as low as Rs 127.75 and closed higher at Rs 128.15/20. The 8.07 per cent 2017 paper went as low as Rs 123.25/30 and closed higher at Rs 123.60.

The 10-year benchmark, the 9.81 per cent 2013 paper closed at Rs 134.32 and a corresponding yield of 5.2652 per cent.

In the inter-bank call money market, rates were easy at 4.40-4.60 per cent.

Through the LAF window, the central bank sucked away liquidity worth Rs 23,015 crore through 35 bids at the repo rate of 4.50 per cent.

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