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The rupee ended 8 paise higher at 61.63 to the dollar against the previous close of 61.71 on the back of dollar selling by foreign banks.
The domestic unit opened weaker at 61.95/$. In intra-day trade, it touched a high of 61.59 and a low of 61.95. A dealer with a public sector bank said large inflows from a foreign telecom company and foreign banks helped prop up the domestic unit during the day.
Last week, the rupee hit a three-week low against the dollar on account of sharp sell off in the euro and broad rally in the US dollar index.
According to Abhishek Goenka, Founder and CEO, India Forex, “The slight weakness in the rupee was attributed to the strength in the US dollar and a sharp sell-off in the euro. However, as locally there was absence of any major trigger, the rupee is seen trading in a very thin range.”
Call rate eases
The overnight call money rate, the rate at which banks borrow from each other for their short-term funding requirements, ended sharply lower at 7 per cent against the previous close of 8.30 per cent.
Bond yields firm up
Yield on the 10-year benchmark 7.16 per cent 2023 government bond hardened to 8.73 per cent from its previous close of 8.70 per cent. Bond prices ended lower at Rs 89.93 from Rs 90.15.
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