The rupee today strengthened against the dollar to close at 55.47on heavy dollar selling from big foreign banks and no dollar demand from oil importers.

“Increased dollar selling by large foreign banks helped the rupee gain,” said a chief dealer with a public sector bank.

The local currency had continued to trade higher today after opening weaker at an intra-day low of 55.75 after the RBI maintained a status quo in its policy review yesterday. On Tuesday, the domestic unit had closed at 55.65 after the RBI maintained a status quo on the policy rates citing “persistently high inflation’’.

“Reforms hopes from the new Finance Minister P Chidambaram and hopes of quantitative easing from US Federal Reserve meet helped the rupee to appreciate,” said Bitupan Majumdar, Head, FX derivatives, JRG Wealth Management.

Call rates ends lower; G-Secs up

The overnight call money market closed lower at 8.00 per cent. The call rates had opened higher at 8.10 per cent from yesterday’s close of 8.05 per cent.

The 8.15 per cent government bond maturing in 2022 climbed higher to close at Rs 99.45 against the previous close of Rs 99.35, while the yield closed lower at 8.23 per cent from Tuesday’s close of 8.25 per cent.

The 9.15 per cent bond maturing in 2024 ended higher at Rs 105.69 against Rs 105.55, while its yield declined slightly to 8.39 per cent from 8.41 per cent.


(This article was published on August 1, 2012)
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