The Hindu Business Line : Rupee moves up; bonds decline

MUMBAI: The rupee gained against the dollar on Monday as an upturn in the stock market as well as unfavourable US data buoyed the domestic currency.

The rupee opened higher at 43.55/56 and was range-bound between 43.55-57. It closed the day at 43.56/57, up from Friday's close at 43.61/62.

In the forwards market, the 12-month closed higher at 1.35 (1.33) per cent and the 6 month at 1.56 per cent (1.50).

In the bond market, prices opened at the same level as on Saturday, but fell by 20-30 paise on concerns of tightening liquidity and a potential hike in the reverse-repo rate. Dealers said foreign banks were seen selling and the prices fell on lack of buying support.

In the one-day reverse repo auction, under the Liquidity Adjustment Facility, the RBI received and accepted 14 bids amounting to only Rs 3,360 crore.

The 7.27-8 year-2013 paper which is currently most active opened at Rs 100.90 (7.12 per cent YTM) and fell to Rs 100.53 (7.18 per cent YTM). It closed at Rs 100.70 (7.15 per cent YTM), down from Friday's Rs 101.08 (7.09 per cent).The 7.38 - 10 year-2015 benchmark paper was dealt at Rs 100.90 (7.25), lower than Friday's close at Rs101.40 (7.18). The call rate closed at 5.10-5.30 per cent (6 per cent). The CBLO market saw 205 trades being put through in the rate range of 5.05 - 5.50 per cent, aggregating Rs 7,671.50 crore.

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