Tracking gains in the local equity market on account of robust capital flows, the rupee strengthened to close at 61.36 against the dollar on Friday from its previous two-week closing low of 61.45. On Friday, the unit opened higher at 61.38 on the back of heavy capital flows due to investment by foreign institutional investors in the domestic equity market. On Thursday, the Government announced austerity measures such as curbs on bureaucrats travelling first class on flights, foreign travel and a 10 per cent cut in non-Plan expenditure.

Call rates, bond yields drop

The inter-bank call money rate, the rate at which banks borrow short-term funds from one another, ended lower at 7.10 per cent from the previous close of 8.10 per cent. Intra-day, it moved in the 7-8.05 per cent range. Yield on the 10-year benchmark 8.40 per cent government security, maturing in 2024, softened a tad to 8.27 per cent from the previous close of 8.28 per cent. The price of the bond ended higher at ₹100.78 from the previous close of ₹100.71.

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