The rupee continued its gaining streak for the seventh trading session, the longest since June 2011. It ended marginally higher at 62.26 against the dollar on Tuesday on the back of consistent rise in Asian currencies and weakness in the American currency. The domestic unit opened at 62.18 as against Monday’s close of 62.27 at the Interbank Foreign Exchange market. It strengthened further to 62.14 on initial selling of dollars by banks and exporters and driven by sustained capital inflows. This comes on speculation that the Federal Reserve will not raise interest rates until the second half of this calendar year, reducing the risk of emerging market outflows, according to a Bloomberg report. During the day, the rupee moved in a narrow range of 14 paise, between 62.14 and 62.28.
Bond yield flat, call rate rises
The yield on the 10-year benchmark 8.40 per cent government security maturing in 2024 remained almost unchanged at 7.74 per cent from the previous close of 7.75 per cent. During the day, the yields moved in the narrow range of 7.73-7.75 per cent, a similar pattern from Monday. The price of the security ended a tad higher at ₹104.25 from ₹104.21. Bond prices and yields move in opposite directions. The inter-bank call money rate, the rate at which banks lend to each other to overcome overnight liquidity mismatches, ended higher at 7.40 per cent from the previous close of 6.90 per cent. Intra-day, it moved in the 6.75-7.70 per cent range.
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