Our Bureau

MUMBAI: The rupee fell marginally against the US dollar on Wednesday to close at 45.77/78, about three paise lower than Monday's level of 45.73.

The rupee had opened at 45.78/80 and traded in the range of 45.74-45.84, said dealers.

There was demand for the dollar at lower levels, which pushed the rupee down to 45.82, before it recovered.

The market saw importers covering their positions by buying dollars, said a dealer with a private bank.

The forward premia market inched up, with the six-month closing at 0.5 per cent (0.47 per cent) and the 12-month closing at 0.45 per cent (0.42 per cent).

The rupee may breach the 46 level in a couple of weeks, so every dip should be used to buy dollars, said the dealer.

Bond prices were under slight pressure due to call rates hovering at over 6 per cent. Though crude prices improved overnight, the G-Sec market did not see much activity as liquidity is seen tight in the short-term, said the chief of treasury of a public sector bank. "The same trend may continue for a week or so," he said.

The 7.37 per cent-9-year-2014 paper opened at Rs 102.54 (6.96 per cent) and closed at Rs 102.47 (6.07 per cent), against Monday's level of Rs 102.5 (6.97 per cent). The 7.49 per cent-12-year-2017 paper opened at Rs 101.67 (7.27 per cent) and ended trade at Rs 101.56 (7.28 per cent), a tad lower than Tuesday's level of Rs 101.58 (7.28 per cent YTM).

Call rates were between 6.30-6.40 per cent (6.25-6.35 per cent). In the one-day reverse repo, under the LAF, the RBI received and accepted one bid amounting to Rs 100 crore. In the one-day repo auction, the RBI received and accepted eight bids amounting to Rs 3,600 crore.

In the CBLO market, there were 298 trades for Rs 12,058.65 crore in the rate range of 5.5-6.4 per cent.

© Copyright 2000 - 2009 The Hindu Business Line