Rupee declines 10 paise
The Indian rupee opened at 40.67 levels, but weakened during the day to R 40.70 to end the day at 40.76 levels against the dollar as against 40.66 levels on Wednesday.

The rupee was was quite volatile during the day, rising to an intra-day high of 40.61 levels. Treasury managers state that multinational banks were seen buying dollars in the morning and selling the same in the evening, to seek arbitrage opportunities, rather than any intervention from the central bank.

Treasury officials also stated that a dip in stock indices saw investors paring positions in the rupee, amid concerns that a reversal in global risk appetite could prompt a wave of capital outflows.

Forward premia ended the day lower, as the yield on the one-month contract closed at 1.06 per cent (1.30 per cent). Similarly, the yield on the six-month premia ended at 2.48 per cent (2.68 per cent) while that on the one-year premia closed at 2.64 per cent (2.76 per cent).

Call rates: The call money opened flat at 00.25-0.30 per cent on Friday on ample liquidity. It ended yesterday at 00.30-00.40 per cent.
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