The rupee ended higher at 61.37 against the dollar on hopes of key reforms kicking in at a faster pace after the incumbent Government at the Centre — of the Bharatiya Janata Party — looked set to form the Government in two more States. Also, the Government’s decision to regulate diesel prices aided market sentiments. “Hopes for government reforms, easing inflation and improving economy supported the rupee,”

India Forex Adivsors wrote in a report to their clients. The rupee opened stronger at 61.18 against the dollar after it closed at 61.44 on Friday. Intra-day, the rupee moved in the 61.18 to 61.38 range. India Forex Advisors expects the markets to consolidate in the absence of any key economic events this week. Going ahead, the rupee is expected to consolidate at 60.80-61.20 levels for the rest of the week.

Call Rates up, Bond yields soften

The interbank call money rate, the rate at which banks borrow short term funds from one another, ended higher at 8.90 per cent from previous close of 7.15 per cent on Friday.

The yield on 10-year benchmark 8.40 per cent government security, maturing in 2024, softened to 8.36 per cent from Friday’s close of 8.39 per cent. The price of the security ended stronger at Rs 100.24 from previous close of Rs 100.05.

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