The rupee closed 13 paise higher at 53.67 against the dollar on a stronger euro and positive domestic equity markets.

The Indian unit opened higher at 53.72 from its previous close of 53.80 per dollar on Tuesday on mild selling of dollar by banks and exporters on the back of persistent capital inflows.

It failed to maintain initial gains and dropped to 53.89 on some dollar demand from importers and later touched a high of 53.59 after the Reserve Bank of India (RBI) eased access to foreign exchange for exporters.

“The RBI has allowed exporters to access the foreign exchange market without having to first exhaust funds in their foreign currency accounts, reversing the previous restriction. This boosted the rupee sentiments,” said a forex dealer with a nationalised bank.

This is a greater comfort for the RBI on rupee levels and they will not have to worry about a sharp fall in the rupee, the dealer added.

Further, easing of fears about the US debt ceiling and a better outlook for the global economy helped the rupee gains.

Call Rates and G-Secs

The inter-bank call money rates closed lower at 8 per cent from Tuesday’s close of 8.05 per cent. Intra-day, the call money rates moved in the 7.85 per cent and 8.10 per cent range.

The 8.15 per cent government security, which matures in 2022, closed lower at Rs 101.85 from a close of Rs 101.96, while yields moved up to 7.86 per cent from 7.84 per cent on Tuesday.

(This article was published on January 23, 2013)
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