The rupee ended stronger on Tuesday at a three-and-a-half week high of 53.13 against the dollar on capital inflows from the share sale of power company NTPC. On Monday, it ended lower to close at 53.28.

The domestic unit opened on Tuesday at 53.40 per dollar on a weaker euro and bearish domestic equity market.

However, the rupee wiped off its early losses to touch an intra-day high of 53.08 on dollar inflows. The government is hoping to raise about $2 billion through a stake sale this week in NTPC as part of the efforts to raise funds towards meeting its fiscal deficit target.

“The capital inflows helped the rupee strengthen after the early losses. The gains are likely to sustain in the week ahead on stronger inflows expected from the share sale of PSUs such as MMTC and SAIL in February and March,” said a chief dealer with a nationalised bank.

The rupee may touch 52.90 levels this week, the dealer said.

Call rates, G-Secs

The inter-bank call money market ended slightly lower at 7.80 per cent. The call rates had opened flat from its previous close of 7.85 per cent.

The 8.15 per cent government security, which matures in 2022, closed higher at Rs 101.46 from Monday’s close of Rs 101.39, while the yields ended at 7.92 per cent from 7.93 per cent.

(This article was published on February 5, 2013)
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