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Mumbai: THE rupee ended on Monday at 48.27/28, tad stronger than its earlier close of 48.2850/2950 against the dollar in the forex market.

State-run banks were seen mopping up the good supply of the greenback. They were buying at 48.2750 levels and kept on with it till the rupee touched its intra-day low of 48.3450, said a forex dealer.

In the latter half of the day, State-run banks were seen selling, due to corporate demand, said a dealer in a bank.

After opening at 48.27/2750, the currency went to an intra-day low of 48.3450 and closed at its high of 48.27/28 against the dollar.

In the forward premia market, the six months premium closed at 3.60 per cent (3.57 per cent) and the one-year at 3.55 per cent (3.57 per cent).

The cut-off price in the Rs 4,500 crore OMO held on Monday, for the 10.95 per cent 2011 paper came at Rs 128.50 and a cut-off yield of 6.5252 per cent. The cut-off price came 50-100 paise lower than the market expectation.

The uniform price auction was over-subscribed with RBI having received 94 bids worth Rs 8,333 crore, out of which 82 bids worth Rs 4,500 crore were accepted.

"The cut-off price was much higher than expected, following which yields have started firming up. The cut-off yield for the 9-year paper at 6.5252 per cent as compared to the ten year paper's yield of 6.41 per cent is very high,'' said a dealer.

This is RBI's signal to the market as to the level at which it wants yields, said the chief dealer in a bank. "We will get a clear indication of how much yields will harden after two hours of trading on Tuesday,'' he added.

The 7.40 per cent 2012 paper closed at a higher yield of 6.41 per cent and a price of Rs 106.90 after opening at Rs 107.20 with a yield of 6.37 per cent.

On the longer-end, the 8.07 per cent 2017 paper closed lower at Rs 111.85, after touching a peak of Rs 112.20.

The marginal rise in bond prices in the early half of the day was offset by the high cut-off yields in the OMO.

In the inter-bank call money market, the call rates closed at 5.50 per cent with liquidity comfortable.

In the one-day repo auction, the RBI received 30 bids worth Rs 16,715 crore, all of which was accepted at the repo rate of 5.50 per cent.

In the 14-day repo auction, the RBI received 11 bids worth Rs 5,770 crore, all of which was accepted at the repo rate.

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