Rupee closes stronger at 61.04 vs dollar

Our Bureau | | Updated on: Mar 12, 2018


The rupee ended 10 paise stronger at 61.04 against the dollar on a stronger euro and lesser oil demand from importers towards the end of the trading session.

The Indian unit opened 16 paise higher at 60.98 per dollar against the previous close of 61.14 on positive sentiments and capital flows.

However, dollar demand from importers and banks were a drag on the unit which declined to 61.29 per dollar during the day.

In addition, the domestic equity market Sensex ended weaker by 71.16 points (0.33 per cent) at 21,255.26 points.

“The dollar demand by importers reduced in the second half supporting the rupee. Further the dollar was weak against the euro thereby aiding the rupee recovery,” said a dealer with a public sector bank.

Treasury heads expect the rupee to remain range bound till the monetary policy by RBI due on December 18.

Call rate slips; G-Secs higher

The inter-bank call money rate, the rate at which banks borrow from each other to meet their short-term requirements, ended weaker at 7 per cent from Monday’s close of 7.80 per cent.

The 10-year benchmark 7.16 per cent government security, which matures in 2023, closed higher at Rs 87.46 from the previous close of Rs 87.14. Yield on the security softened to 9.17 per cent from 9.22 per cent.

The yields on widely traded 8.83 per cent government security (also maturing in 2023) closed softer at 8.83 per cent from 8.90 per cent.

Analysts expect yields to stay at elevated levels for sometime now as the Government is buying back short-term securities and issuing long-term ones. High bond yields impact negatively on banks’ G-secs portfolio.

Published on December 10, 2013
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