Gaining for the second day, the rupee closed higher at 55.40 against the dollar due to stronger domestic equity markets and a robust Euro. On Thursday, it had closed at 55.61 against the dollar . The domestic unit had opened stronger against the dollar at 55.54 on stronger domestic and Asian equity markets after the European Central Bank announced sovereign bond-buying measures on Thursday. The BSE benchmark Sensex closed higher by 337 points (1.95 per cent) at Rs 17,683.73. Globally, the markets gained after the European Central Bank announced a bond-buying scheme to reduce borrowing costs of debt-ridden European states. Robust US jobs data also supported the rupee. Further, a statement by the Oil Ministry that there are no immediate plans to hike fuel prices propped the rupee.

Call rates and G-secs

The overnight call money market closed sharply lower at 7.50 per cent from its previous close of 8 per cent on Thursday due to easy liquidity. Intra-day, the rates moved in the range of 7.25 and 7.75 per cent range. The 10-year benchmark 8.15 per cent government security dropped lower to close at Rs 99.65 (yield: 8.20 per cent) from the previous close of Rs 99.92 (yield: 8.16 per cent).

(This article was published on September 7, 2012)
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