Forex

Rupee ends at 1-month high of 61.80

Priya sundarajan | | Updated on: Feb 26, 2014

The rupee strengthened to a one-month high of 61.80 against the dollar on Friday boosted by dollar inflows and selling by exporters aided by gains in the euro.

In February, the rupee rose 1.5 per cent registering its biggest monthly gain since October.

The domestic unit had closed at 61.99 on Wednesday. The markets remained closed on Thursday.

On Friday, the unit opened weaker at 62.10 per dollar due to mild dollar demand from importers. It declined to 62.14 in the early trades but recovered to 61.79 on dollar selling by exporters.

The euro also rose to its highest level against the dollar this year after the euro zone inflation came in above expectations. This boosted the rupee sentiments.

Further, capital inflows into the domestic equity market supported the Indian currency. The BSE-benchmark Sensex ended at 21,120 points, stronger by 133 points (0.63 per cent) over the previous close.

However, the economic growth data released post market hours showed a decline with GDP at a slower-than-expected 4.7 per cent in the three-months ending December, 2013. This is likely to weigh on the rupee on Monday.

Call rates, Bond yields soften

The inter-bank call money rate, the rate at which banks borrow money from each other to meet short-term mismatches, ended weaker at 7.75 per cent from its previous close of 7.95 per cent on Wednesday.

Yield on the 10-year benchmark 8.83 per cent Government security, maturing in 2023, softened to 8.86 per cent from its previous close of 8.91 per cent. Bond prices rose to Rs 99.77 from Rs 99.42. Bond prices and yields move in opposite directions.

>beena.parmar@thehindu.co.in

Published on March 12, 2018

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