The Rupee ended stronger against the dollar at 60.96 due to dollar selling by foreign banks.The domestic unit had closed at 61.20 per dollar on Tuesday.
On Wednesday, the unit opened higher at 61.08 on the back of mild capital flows into the domestic equity markets in the first half trading session.
The BSE-benchmark Sensex, however, pared gains and ended flat from its previous close of 21,833 points. “Foreign funds have been buying into the Indian equity markets ahead of the general elections amid improved sentiments,” said a dealer with a nationalised bank.
During the day, the rupee moved in the range of 61.16 to 60.91 per dollar at the Interbank Foreign Exchange market.
Investors will watch out for the Federal Reserve's decision, due late evening on Wednesday, for further impact of its tapering of the US bond purchase programme.
Call Rates up, Bond Yields down
Call money rate, the rate at which banks borrow from each other to overcome short-term liquidity mismatches, ended marginally higher at 9 per cent from its previous close of 8.95 per cent on Tuesday.
The price of 8.83 per cent 10-year benchmark bond maturing in 2023, closed higher at Rs 100.32 from Rs 100.16. The bond yield softened to 8.77 per cent from Tuesday’s close of 8.80 per cent.
Bonds prices and yields move in opposite directions.