The rupee pared losses to end stronger at 61.85 against the dollar on persistent foreign capital flows . It had closed at 62.16 on Thursday. The domestic unit opened higher at 62.02 per dollar. However, it declined to 62.16 during the day on a stronger American currency and month-end dollar demand from banks and importers. “Most Asian currencies were seen trading flat-to-slightly weaker compared to the dollar.
The dollar hit a five-year high against the yen and held firm against other currencies on expectations that the US economy will continue a solid recovery,” said Abhishek Goenka of India Forex Advisors. However, towards the afternoon session , the rupee gathered momentum and gained to 61.83 at the Inter-bank Foreign Exchange market.
Call rates up, G-Secs weaker
The inter-bank call money rate, the rate at which banks borrow short-term funds from each other, ended higher at 8.75 per cent against the previous close of 8.65 per cent. The widely traded 8.83 per cent government security, which matures in 2023, ended weaker at Rs 99.15 from Thursday’s close of Rs 99.60. Yields on the security hardened sharply to 8.96 per cent from 8.89 per cent. Bond prices and yields move in opposite directions.