The rupee strengthened to an eight-month high of 60.16 to a dollar against the previous close of 60.48 on persistent foreign inflows into the domestic equity market. According to a dealer with a public sector bank, oil marketing companies ramped up dollar purchases, limiting further rise in the domestic currency, while the the RBI also bought dollars in the market to boost its reserve. In intra-day trade, the domestic unit touched a low of 60.28 and a high of 60.07.

Call rates down, bond yields flat

The inter-bank call money rate, the interest rate at which banks borrow money from each other to overcome short-term liquidity mismatches, ended lower at 7.10 per cent from its previous close of 7.25 per cent. The 8.83 per cent 10-year benchmark bond, maturing in 2023, ended higher at ₹100.28 from the previous close of ₹100.25, while the yield remained flat at 8.78 per cent. Bond prices and yields move in opposite directions.

deepa.nair@thehindu.co.in

(This article was published on March 26, 2014)
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