The rupee today ended higher at 55.35 against the American currency on mild dollar selling and hopes of oil price hike by the Government. On Monday, the rupee had closed at 55.45 against the dollar.
Snapping a three-day gaining streak, the local unit had opened steady at 55.45 and touched an intra-day low of 55.57 before some aggressive dollar selling by exporters and banks in the afternoon trade salvaged the rupee.
Oil Minister S. Jaipal Reddy’s statement that India will have to hike the price of heavily subsidised fuels such as diesel in the near term strengthened reform hopes further supporting the rupee.
Investors will watch out for the August factory output and inflation figures due later this week.
Call rates, G-Secs
The inter-bank call rates ended at its opening trade and intra-day high of 8.05 per cent. The rates for the call money market had closed at 8.10 per cent on Monday.
The 8.15 per cent government security, maturing in 2022, closed slightly lower at Rs 99.76 (yield: 8.18 per cent) from its previous close of Rs 99.80 (yield: 8.17 per cent) on Monday.