Opening the day at 46.72/75, little changed from its previous close, the rupee fell by around 19 paise on heavy demand for the dollars from state-run banks and corporates. The rupee's fall was arrested in post-noon trades after the State Bank of India and other banks sold dollars at the behest of the RBI.

``Trades were volatile. Quite many banks were having over-bought positions and they were seen selling... forwards held flat, but exporters are seen coming in on Tuesday,'' e-Mecklai's forex consultant, N Subramanian, said. He pointed that the euro's gain to 0.8500 levels from 0.8250 is an indicator that the rupee will gain in the days ahead. ``I see the rupee gaining to 46.50 levels on Tuesday,'' Mr Subramanian said.

Forward premiums quoted a shade softer with the six-month forward premium was quoted 4.20 per cent (4.30 per cent). Forward premiums tracked the rupee and moved higher during in early trades, but the strengthening of the rupee after the ``verbal intervention'' of the RBI and ample liquidity in the call money market softened premiums. Call rates closed at 8-8.25 per cent levels on ample liquidity.

The Reserve Bank of India also pumped in Rs 5,000 crore through its reverse-repos auctions. November dollars quoted at 14/15 paise (15/16 paise) while in the far forwards, April quoted at 98/99 paise (99/100 paise) with May at 113/114 paise (114/115 paise). Bond prices rose a shade due on ample liquidity and gains in the spot-rupee. The 11.40 per cent 2008 was traded at Rs 100.15 (Rs 99.98) with the 12.50 per cent 2004 at Rs 105.13 (105.06). On the National Stock Exchange wholesale debt segment, trades worth Rs 772.35 crore were recorded. Deals worth Rs 307.35 crore were seen in the 11.40 per cent 2008 at a weighted average yield of 11.40 per cent while those in the 11.03 per cent 2012 amounted to Rs 130 crore (11.70 per cent).