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The >rupee recovered from over a month’s low to close higher at 54.18 against the dollar as the exporters and banks sold dollars.
The domestic unit had closed 30 paise lower at 54.22 against the greenback on Friday.
On Monday, extending losses in the morning trades, the rupee opened lower at 54.40 weighed down by a stronger dollar. In addition, flat domestic equity market and weaker Asian markets were a drag on the rupee in the morning trade.
Intra-day, the Indian currency dropped to over a month's low of 54.43 per dollar at the Interbank Foreign Exchange market as the American currency gained against other currencies.
However, it recovered about 30 paise during the day touching 54.13 per dollar in the second half of the trade session on dollar selling by exporters.
The rupee may continue to remain volatile amid positive expectations from the Union Budget and dollar demand from banks and importers.
Call rates, G- Secs
The interbank call money rates closed higher at 7.95 per cent from its previous close of 7.80 per cent. The call money market movement remained largely flat touching 7.90 per cent during the day.
Call money rates are indicative of inter-bank borrowing to meet their short-term requirements. A lower rate indicates higher liquidity in the financial system.
The 8.15 per cent government security, which matures in 2022, ended marginally higher at Rs 102.10 (yield: 7.82 per cent) from the previous close of Rs 102.06 (yield: 7.83 per cent).
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