A day ahead of the crucial vote in the Parliament on FDI in multi brand retail, the rupee ended stronger at 54.68 against the dollar on optimism. It had closed at 54.77 on Monday.

Traders will eye the crucial vote on foreign direct investment (FDI) due on Wednesday, which will be a key determinant for the rupee's direction in the medium term.

The Indian unit had slipped 19 paise to 54.93 after opening almost flat at 54.78 against the dollar in early trade on the back of strengthening of dollar and mild dollar demand from importers.

However, it recovered to 54.60 on a six-week high euro as the dollar weakened amid optimism over Greece and strong Chinese manufacturing survey that weighed on the American currency.

Dollar demand from importers and Parliament logjam may continue to put pressure on the rupee.

Call rates and G-Secs

The overnight call money rates ended higher at 8.10 per cent against the previous close of 8 per cent. Intra-day, the call rates moved in the range of 7.85 to 8.15 per cent.

The 10-year benchmark 8.15 per cent government security, maturing in 2022, closed marginally higher at Rs 99.86 from Monday’s close of Rs 99.84, while yields remained almost unchanged at 8.17 per cent.

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Beena.parmar@thehindu.co.in

(This article was published on December 4, 2012)
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