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Strong foreign inflows boosted the Indian rupee to an eight-month high to close 14 paise stronger at 60.78 against the dollar.
The domestic unit had jumped 45 paise on Friday, posting its biggest daily gain in two weeks, to close at 60.92 against the dollar.
On Monday, the unit opened flat against Friday’s close of 60.92 amid stronger capital flows and dollar gaining strength in the overseas market. However, it surged to 60.60 against the American currency on stronger capital flows into the domestic equity markets and tracking gains in Asian currencies.
A higher opening in the domestic equity market and strengthening of the euro against the dollar overseas supported the rupee, dealers said.
The BSE Sensex rallied by 300 points (1.38 per cent) to breach 22,000 levels ending at its life-time high. Most of the Asian currencies were also trading higher against the greenback.
Rupee sentiments are boosted as foreign investors continue to invest dollars in the emerging markets, especially India.
Since the beginning of this year, the rupee has gained about 1.8 per cent.
Call rates, bond yields fall
The inter-bank call money rate, interest rate at which banks borrow money from each other to overcome short-term liquidity mismatches, closed a tad weaker at 8.95 per cent from a close of 9.0 per cent on Friday.
The 8.83 per cent 10-year benchmark bond, maturing in 2023, rose to Rs 100.27 from Friday’s close of Rs 100.20, while the yield softened slightly to 8.78 per cent from 8.79 per cent. Bond prices and yields move in opposite directions.
Read also: >Bullish short term view for rupee
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