The rupee ended 6 paise stronger against the dollar at 60.07 on a stable domestic equity market amid bouts of dollar demand from banks and oil importers. It had closed at 60.13 on Wednesday. The Indian unit opened higher at 60.05 per dollar on continued inflows into the domestic markets and caution ahead of the US Fed’s meeting later on Thursday. The rupee declined to 60.30 during the day as dollar demand from importers and mild capital outflows limited gains. . “The rupee is expected to remain in the broad range of 58-60 per dollar in the month ahead,” said NS Venkatesh, Chief General Manager and Head of Treasury, IDBI Bank.

Call rates, G-Sec yields fall

Amid high liquidity, the overnight call money rate (the rate at which banks borrow money from each other to overcome short-term liquidity mismatches) closed sharply weaker at 7.01 per cent from its previous close of 8.15 per cent on Wednesday. Yield on the 10-year benchmark 8.83 per cent government security (G-Sec), maturing in 2023, dropped to 9 per cent from Wednesday’s close of 9.03 per cent. Prices of the security closed higher at ₹98.89 from ₹98.69. Security prices and yields move in opposite directions.

(This article was published on April 10, 2014)
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