The rupee ended 8 paise stronger at 62.30 against the dollar on favourable inflows in the emerging markets amid thin volumes of trading ahead of the US jobs data.

The rupee opened a tad stronger at 62.36 from Thursday’s close of 62.38 on thin volumes of trading and positive domestic equity market.

“The mixed bag of US economic reports failed to provide any clue to the market participants about the US Fed’s decision on its tapering plan,” said Abhishek Goenka, Founder & CEO, India Forex Advisors.

The rupee continued to gain till 62.25 per dollar on mild dollar selling by exporters and some banks amid sustained capital inflows. Later, mild dollar buying by importers weighed on the rupee, which declined to 62.42 during the day.

US monthly employment data, a key indicator in setting expectations about whether the Federal Reserve will continue its pace of steady cuts in its bond purchases, was due to be announced late Friday.

Meanwhile, BSE-benchmark Sensex ended weaker by 65.82 points (0.32 per cent) at 20,376.56 points at day’s close.

Call rates, bond yields rise

The interbank call money rate, the rate at which banks borrow money from each other to meet short-term liquidity mismatches, ended sharply higher at8.75 per cent from Thursday’s close of 7.50 per cent.

The yield on the benchmark 8.83 per cent Government security, maturing in 2023, hardened to 8.73 per cent from 8.71 per cent.

The price fell to Rs 100.59 from previous close of Rs 100.70. Bond prices and yields move in opposite directions.

(This article was published on February 7, 2014)
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