Re ends flat after touching 59.60

Our Bureau Updated - March 12, 2018 at 09:00 PM.

rupee

Global and domestic optimism amid heavy capital inflows and dollar demand from importers led the rupee to end flat at 59.74 against the dollar. It touched a 1-1/2 month high of 59.60 per dollar.

The rupee had ended 7 paise weaker at 59.74 on Thursday.

The domestic currency opened marginally higher at 59.69 at the Interbank Foreign Exchange market. It appreciated to 59.60 on the back of foreign inflows supporting the rupee.

Domestic equity market Sensex ended at 25,962 points, higher by 138 points (0.54 per cent) over the previous close.

World stocks touched an all-time high lifted by strong US economic data.

However, the gains in the rupee were curtailed as it declined to 59.82 per dollar after the RBI likely intervened by asking banks to buy dollars from the market.

Intra-day, the rupee moved in the 13 paise range against the American currency.

The rupee is likely to remain volatile with an upward bias between 58.50 and 59.80 per dollar as market players will watch out for the new Government’s first Union Budget due next week, experts said.

Call money, bond yields up

The inter-bank call money rates, the rate at which banks borrow short-term funds from each other to tide over liquidity mismatches, ended about 100 bps higher at 8 per cent from Thursday’s close of 7.01 per cent.

The benchmark 8.83 per cent Government security which matures in 2023, also closed a tad weaker at Rs 101.04 from Rs 101.07, while the yield hardened slightly to 8.66 per cent from 8.65 per cent.

Bond prices and yields move in the opposite direction.

Published on July 4, 2014 10:12