Our Bureau

MUMBAI: The rupee gained marginally against the dollar on Tuesday. But the market was wary of the central bank buying dollars to induce rupee liquidity, if the rupee breaches the 44.20 level, said a dealer.

The rupee opened at 44.23 and ended at 44.22, four paise higher than Monday's close of 44.26.

"There was hardly any speculative buying today. Only some corporates covered their positions," said a dealer with a private bank.

The forward premia gained by about 4-5 paise, with the six-month closing at 2.30 per cent (1.9 per cent) and the 12-month closing at 1.76 per cent (1.52 per cent).

In the bond market, prices fell by around 20 paise due to pressure on liquidity.

Dealers said that fears the Rs 5,000-crore auction scheduled for this week would further create a crunch in liquidity meant there was little buying interest. Besides, traders are not taking major positions before the Budget, said dealers.

The 8.07 per cent-11 year-2017 paper opened at Rs 105.35 (7.35 per cent YTM) and ended at Rs 105. 27 (7.36 per cent YTM), lower than Monday's Rs 105.38 (7.34 per cent YTM). The 7.40 per cent-29 year-2035 opened at Rs 97.72 (7.59 per cent YTM) and closed at Rs 97.48 (7.61 per cent).

The call rate closed at 7-7.10 per cent. In the first one-day auction, the RBI did not get any bids in the reverse repo and received 36 bids for Rs 18,695 crore in the repo. In the second auction, the RBI received and accepted two bids for Rs 130 crore in reverse repo and 14 bids for Rs 5,450 crore in the repo auction.

In the CBLO market, there were 296 trades for Rs 21,003.05 crore in the 6.47-6.55 per cent. - - Our Bureau

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