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Mumbai: THE rupee closed weaker on Friday at 48.7650/7750 to a dollar as compared to its previous close of 48.75/7550 in a lacklustre forex market.

Dealers said that the rupee mostly traded in the narrow band of 48.75-77 throughout the day. Opening at around 48.7450/7550, the rupee fell to 48.77/78 on the back of dollar demand from State Bank of India, initially and later from foreign banks. Due to this, the rupee was unable to appreciate from the levels of 48.77 and closed at those levels. The inflows continued to be good, but the dollar inflows were mopped up by the State-run banks, dealers said.

Forwards closed unchanged, with the six-month forward premium closing at 5.75 per cent (5.8 per cent), while the 12-month forward premium finishing at 5.05 per cent (5.05 per cent).

Bond prices remained in the range of around 10-15 paise throughout the day as trading picked up in the short-term papers.

Dealers said that prices rose during afternoon trade, but fell on account of some profit-booking, to close at opening levels.

The 11.50 per cent 2011 paper, which had opened at Rs 127.80, rose to a high of Rs 127.95 and closed at around Rs 127.80/85. The 11.03 per cent 2012 paper, which had opened at Rs 125.35/45, gained to Rs 125.50/52 and closed at Rs 125.35/45.

Said one dealer, "There were some active trading in shorter tenor papers, such as 11.10 per cent 2003, the 12.5 per cent 2004 and the 11.90 per cent 2005 paper. Due to the year-end, most traders want to take their positions in short-term papers and treasury bills rather than putting their funds in longer term papers.''

In the inter-bank call money market, the call rates closed at around 6.30 per cent after falling to a low of six per cent. Dealers said that call rates had closed slightly higher as there may be have some last minute product covering by few players.

In the four-day repo auction, the RBI received and accepted four bids of Rs 3,970 crore at six per cent.

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