The Hindu Business Line : Rupee up 16 paise; g-secs rally

MUMBAI: The rupee closed at 43.80 to the dollar on Tuesday, around 16 paise stronger than its previous day closing of 43.95/96.Despite the greenback strengthening against international currency majors, the domestic currency appreciated to a high of 43.77 amid good dollar supplies, after opening the day at 43.85, dealers said.

"There are some concerns on the outlook of the rupee. Despite the fact that it has appreciated today, the bearishness in the domestic equity market coupled with concerns over the rise in global crude oil prices are likely to keep it bogged down against the dollar in the medium term," said a dealer with a private sector bank.

In the forwards market, the six-month forward closed at 2.01 per cent (2.05 per cent).Bond prices gained by around 30 paise across maturities on the back of good trading interest in the government securities market. Although there is no change in the macro-fundamentals of the market, there is some speculative trading ahead of inflation figures being announced on Friday, dealers said.

The 7.38-per cent 2015 paper got dealt up to Rs 106.30 at 6.54 YTM (Rs 106). The 7.55-per cent 2010 paper closed at Rs 105.30 (Rs 105).

Call rates remained in the range of 4.75 per cent in the inter-bank market. In the one-day repo under LAF, RBI received and accepted 26 bids amounting Rs 7,625 crore at 4.75 per cent. In the CBLO market, 116 trades were conducted for Rs 4,082.60 crore in the rate range of 4.45 per cent and 5 per cent.

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