Rupee ends at 59.70 a dollar

Our Bureau Mumbai | Updated on March 12, 2018 Published on May 13, 2014

The rupee zoomed to a near ten month high to close at 59.70 against the dollar after the exit polls projected a government with a stable majority at the centre. The domestic unit had closed at 60.05 per dollar on Monday.

The markets cheered up to the exit poll prediction, released late Monday evening, of a comfortable victory for the Narendra Modi-led NDA Government in the national elections. The sentiment continued on Tuesday as the rupee jumped 33 paise in its opening trade on heavy capital flows.

After breaching the 24,000 levels, the BSE-benchmark Sensex ended at 23,871 points, surging 320 points (1.36 per cent), while NSE’s Nifty rose 94 points (1.35 per cent) to close at 7,108.75 points.

The rally helped the rupee appreciate to 59.59 per dollar at the Interbank Foreign Exchange market. However, broader gains were capped as the RBI bought dollars to limit the sharp appreciation in the rupee, currency dealers said. The rupee declined to 59.92 during the day.

“This is a good opportunity for the RBI to build its reserves. After the election results, the rupee may appreciate to 58 levels, but it would not be sustainable. A decisive mandate will cap the rupee at 61 levels,” said Mohan Shenoi, President - Group Treasury at Kotak Mahindra Bank.

The final results of the polls will be declared on Friday. Hence, Shenoi added that the Indian rupee is likely to trade in the broad range of 58 to 61 per dollar levels in the medium term.

Call rates and G-Secs

The overnight call money rate (the rate at which banks borrow money from each other to overcome short-term liquidity mismatches) ended higher at 9 per cent from the previous close of 8.95 per cent on Monday.

The yield on 10-year benchmark 8.83 per cent bond, maturing in 2023, hardened to 8.78 per cent from Monday’s close of 8.72 per cent. Bond prices dropped to Rs 100.29 from Rs 100.65. Bond yields and prices move in opposite directions.


Published on May 13, 2014

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.