As Reserve Bank of India put sands in the wheels of speculatory currency trading in the futures market, the rupee closed relatively stronger at 60.14 against the dollar.

The Indian unit had closed at 60.61 on Monday.

Future contracts are settled abroad over which the RBI has very little control. Such instruments, also used to hedge the rupee-dollar value, have partially led rupee in a form slump.

Also, the gains in the domestic equity markets supported the Indian unit.

The rupee opened much stronger at 59.70. Intraday, the rupee moved between a high and low of 59.65 and 60.48, respectively.

However, according to currency analysts, gains due to the RBI’s announcement on speculative trading are only likely to have a limited impact on the Indian unit.

Call rates lower; G-Sec up

The interbank call money rates closed lower at 7.10 per cent from previous close of 7.65 per cent.

The benchmark 7.16 per cent government security, which matures in 2023, closed higher at Rs 97.32 from previous close of Rs 97.17. Yields hardened to 7.55 per cent from previous close of 7.57 per cent.

satyanarayan.iyer@thehindu.co.in

(This article was published on July 9, 2013)
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