The rupee ended up 37 paise to close at 53.47 against the dollar due to dollar selling by some banks and exporters. The Indian currency unit also benefited from dollar sales by Bharat Petroleum Corporation Ltd, which repatriated $500-million dollar from its recent bond issue. The rupee opened a tad lower at 53.89 from the previous close of 53.84. Intra-day, it moved in the 53.46 to 53.89 range. Month-end demand for dollars from oil importers is likely to keep the rupee volatile. Also, the proposed auction of Rs 5,385 crore (about $1 billion) of State Government Securities on Tuesday (October 23) by the Reserve Bank of India, on behalf of eight States, is likely to attract some inflows. This may have the potential to strengthen the rupee further.

Call rates, G-Secs

The inter-bank call rates closed higher at 8.10 per cent against Friday’s close of 7.90 per cent. The 8.15 per cent government security, which matures in 2022, closed slightly lower at Rs 100.10 (yield: 8.13 per cent). It had closed at Rs 100.13 (yield: 8.12 per cent) on Friday.

(This article was published on October 22, 2012)
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