The rupee pared initial losses to end 42 paise stronger against the dollar at 60.88 due to dollar inflows from exporters and banks amid positive domestic equity market.

The domestic unit opened stronger at 61.15 from its life-time low closing of 61.30 on Wednesday.

“The market strengthened after the announcement of Reserve Bank of India’s surplus cash transfer of Rs 33,010 crore to the Government of India. Moreover, investors booked profits on the last working day of the week, hence, foreign banks were selling dollars in the market,” said a dealer with a public sector bank.

Also, a stronger euro and pound and expectations of further measures by the government on stabilising rupee after the financial regulators meet in Mumbai supported the rupee.

Intra-day, the rupee touched a low of 61.39 and recovered to 60.83 per dollar.

Call rates, bond yields

The inter-bank call money rates, the rates at which banks borrow short-term funds from each other, closed higher at 10.10 per cent from its previous close of 9.75 per cent. it moved in the range of 9.50 and 10.25 per cent during the day.

The benchmark 7.16 per cent government security, which matures in 2023, closed marginally lower at Rs 93.56 from Wednesday’s close of Rs 93.60. Yield on the security was lower at 8.12 per cent from 8.16 per cent.

deepa.nair@thehindu.co.in

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