Date:05/08/2005 URL: http://www.thehindubusinessline.com/2005/08/05/stories/2005080502070600.htm

Back Rupee sheds 7 paise; securities in range

Our Bureau

MUMBAI: The rupee closed lower at 43.51/52 against the dollar on Thursday.

Dealers said the RBI may have bought dollars, driving the rupee lower.

The rupee opened at 43.43/45. On Wednesday, the rupee had ended at 43.44.

The forward premia market was range-bound, with the 12-month premium closing at 0.92 per cent (1 per cent) and 6-month closing at 0.92 per cent (1.03 per cent).

The bond market traded in a range. Bonds opened about 10 paise higher, but came down by 6-7 paise due to lack of buying interest. However, prices gained about 5 paise towards the end of trade, following Bank of England's cut in repo rate.

The 7.55 per cent 5-year 2010 paper opened at Rs 103.95 (6.57 per cent YTM) and closed at Rs 103.95 (6.57 per cent YTM), almost unchanged from Wednesday's level of Rs 103.90/95 (6.58 per cent YTM).

The 7.27 per cent 8-year 2013 paper closed at Rs 102.57 (6.85 per cent YTM), down from earlier level of Rs 102.47/50 (6.87 per cent YTM).

The 7.38 per cent 10-year 2015 benchmark paper was dealt at Rs 102.90/95 (6.97 per cent YTM) against the earlier level of Rs 102.45 (7.03 per cent YTM).

Call rates closed at 4.75-5 per cent levels.

In the one-day reverse repo auction, the RBI received and accepted 56 bids amounting to Rs 45,880 crore.

In the CBLO market, 281 trades were put through in the range of 4.85-5 per cent, for Rs 10,944.70 crore.