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Re closes softer; securities depressed ahead of auction

MUMBAI: THE rupee closed marginally weaker at 46.82/8250 to a dollar on Wednesday, in a subdued forex market. It had closed at 46.79/80 to the dollar on Tuesday.

The rupee commenced the day's trade at 46.80/81 and good dollar demand in the morning pushed the Indian currency to a low of 46.8425, said dealers. The rupee, however, steadied to close at around 46.82/83.

``The 46.85 level seems to be a psychological level. The dollar demand declines as the rupee nears these levels,'' said a dealer in a foreign bank.

The forwards closed lower with the six-month forward premia at around 4.05 per cent (4.15 per cent) and the 12-month premia at 4.15 per cent (4.17 per cent).

The securities market dropped by around 10 paise weighed down by the prospect of the yield-based auction of a 11-year Government stock. The market does not expect a good response for the long-dated paper.

The 11.40 per cent 2008 opened the day's trade at Rs 101.70/72 and closed weaker by 10 paise at Rs 101.60/62. The 11.30 per cent 2010 paper opened at Rs 100 and closed weaker at Rs 99.90.

The call rates ruled between 8 and 8.50 per cent levels today in the inter bank market.

The RBI on Wednesday received and accepted one bid worth Rs 210 crore in the one-day repo auction at the rate of 8 per cent. The five-day repo received one bid amounting to Rs 3,000 crore which was accepted at the rate of 8 per cent. -- Our Bureau