The rupee closed at a seven-month high of 60.85 to the dollar on Monday against the previous close of 61.09, buoyed by the domestic equity market, which touched a record high.

Boosted by inflows from foreign institutional investors, the benchmark BSE S&P Sensex hit an all-time intra-day high of 22,005.54.

However, it ended the day flat, rising 15 points to close at 21,934,83.

Similarly, the National Stock Exchange index Nifty soared to a life-time high of 6,548.75, before closing at 6,537.25.

The domestic unit opened 19 paise weaker at 61.28 due to demand for the greenback from importers. During intra-day trades, the rupee touched a high of 60.78 and a low of 61.33.

“The rupee strengthened to a seven-month high on the back of heavy foreign flows into both equities and debt,” said Abhishek Goenka, Founder and CEO of India Forex Advisors. “Foreign funds have bought $852.10 million in equities and $5.6 billion in debt so far in 2014.”

Call rate ends lower

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 against the previous close of 7.90 per cent. The 8.83 per cent 10-year benchmark bond maturing in 2023 rose to ₹100.48 from the previous close of ₹100.09, while its yield softened to 8.75 per cent from 8.81 per cent.

(This article was published on March 10, 2014)
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