The Hindu Business Line : Rupee weakens; securities in range

Forex dealers said that although the market was dull, with the rupee losing against the greenback, good demand was observed towards the fag end of the trading hours. Public sector banks and foreign banks, along with importers, were active buyers. FIIs were into selling mode in a market in which stray deals were observed at the levels of 45.40.

The forwards market was volatile as the discounts steepened towards the beginning and moved towards premium. The six-month forward closed at -0.58 per cent (-0.62 per cent), and the one year forward closed at - 0.12 per cent (-0.24 per cent).

Bond prices moved in a 10 paise band but showed a bearish trend.The poor sentiment in the market was reflected in the low volumes of around Rs 2,000-2,500 crore, according to Mr Rohan Ketkar, Manager (Treasury), STCI.

The bell-weather securities closed lower, the 8.07 per cent 2017 paper opened at Rs 123.20 and was dealt up to 123.05. The 7.37 per cent 2014 paper opened at Rs 116.70/71, touched slightly higher at Rs 116.73, before closing at Rs 116.66/67.

The 7.46 per cent 2017 paper opened at Rs 118.06/10 before closing at Rs 117.93/95, with very few quotes observed.

The call rates moved in a range of 4.10-4.50 per cent.

In the seven day repo under the LAF, the RBI received and accepted 38 bids of 10,195 crore at the repo rate of 4.50 per cent.