“For rupee we expect a range of 83.15 to 83.65 during the next week as RBI would step in to absorb the dollars which could come in due to inflows” currency traders said. The central bank will also be present above 83.55 levels.
The RBI intervenes in the market periodically via liquidity management, including through the selling of dollars, to prevent a steep fluctuation in the local currency, though it has fallen to record highs intermittently.
Oil prices were up ahead of the US inflation data and were set for a third weekly gain. Brent was trading at $85.61 per barrel.
The 10-year benchmark government bond remained unchanged with yields opening at 6.99% and closing at 7.00%.“The flow was on expected lines so the market opened flat and due to auction it gave up its gains and fell down by 10 paise and closed there”, bond traders said. Liquidy in the banking system eased a bit at a deficit of Rs.92,651 crores, up from rs. 1.6 lakh crores. The RBI conducted variable rate repo (VRR) auctions yesterday, and also announced one today. However, the market players need durable liquidity as VRR auctions bring very transitory liquidity, traders said.
