Date:31/12/2005 URL: http://www.thehindubusinessline.com/2005/12/31/stories/2005123103300600.htm

Back Rupee firms up; securities flat

Our Bureau

MUMBAI: The rupee appreciated against the greenback on Friday on the back of dollar inflows.

The domestic currency opened at 45.11/12.

It closed at 45.04/05, up from Thursday's level of 45.16/17.

A dealer at a private bank said though there was some month-end demand for dollars, supply through FII inflows and export-related dollar receipts exceeded the demand.

In the forward premia market, the 12-month premium and the 6-month premium were unchanged at 1 per cent and 1.35 per cent, respectively.

In the bond market, the traded volume was thin and prices were flat. "Liquidity in the system as well as the price of global crude will determine how bond prices will move next week," said a dealer at a private bank.

The 8.07-12-year 2017 paper opened at Rs 106.59 (7.19 per cent YTM) and ended at Rs 106.58 (7.19 per cent YTM), slightly higher than Thursday's close at Rs 106.56 (7.20 per cent YTM). The 10.25-16-year 2021 paper opened at Rs 126.40 (7.36 per cent YTM) and closed at Rs 126.39 (7.36 per cent YTM), almost unchanged from the earlier level of Rs 126.38 (7.36 per cent YTM)

The call rate closed at 7 per cent, but touched an intra-day high of 7.25-7.30 per cent.

In the first three-day reverse-repo auction, RBI did not receive any bids. It, however, received and accepted 38 bids for Rs 23,085 crore in the three-day repo auction. In the second three-day reverse-repo auction, RBI received three bids for Rs 2,040 crore and 11 bids for Rs 6,710 crore in the repo auction. In the CBLO market, there were 293 trades for Rs 11,072.50 crore in the range of 5.50-6.60 per cent.