The rupee bounced back on Tuesday to close at 54.43, up 18 paise, on the back of dollar sales by exporters and inflows from foreign investors worth $30 million in stocks.

As global investors waited for US Presidential polls, uncertainty over Greece’s next aid payment kept all currencies in tight leash, said traders. A good set of economic data from key European nations, however, helped the euro climb above $1.28 level later, helping the rupee reverse losses as well.

Renewed dollar selling by exporters and firm local equities aided the rupee’s recovery and it touched a high of 54.35 a dollar. It finally concluded at 54.43 — up 18 paise or 0.33 per cent over Monday’s close of 54.61.

Analysts see the rupee making a sustained bounce back soon and a report by Bank of America Merrill Lynch said it is expected to touch 51-level against US dollar by December.

Bonds rise

Government securities (G-Secs) rose on good buying support from banks and corporates. The 8.33 per cent G-Sec maturing in 2026 surged to Rs 100.37 from Rs 100.21 on Monday, while its yield edged down to 8.28 per cent from 8.30 per cent.

The 8.15 per cent 2022 bond climbed to Rs 99.77 from Rs 99.6925, while its yield inched down at 8.18 per cent from 8.19 per cent.

Call rates up

Call money rates ended higher at the overnight call money market on good demand from borrowing banks. The overnight rate closed higher at 8.15 per cent from 8.05 per cent on Monday. It moved in the 7.75-8.15 per cent range.

The RBI, under the Liquidity Adjustment Facility, purchased securities worth Rs 42,315 crore in 25 bids at the one-day repo auction at a fixed rate of 8 per cent.

(This article was published on November 6, 2012)
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