Rupee ends higher by 38 paise at 61.53

Our Bureau Updated - March 13, 2018 at 10:34 AM.

rupee

The rupee ended at a one-month high against the dollar at 61.53, up 38 paise from its previous close on the back of dollar sales by exporters and lower inflation expectations.

The domestic unit gained 36 paise to 61.55 in the opening trade against Friday’s close of 61.91 due to fresh selling of dollar by banks and exporters, triggered by weakness in the greenback overseas.

“Exporters and corporates sold dollars to book profits on account of a public holiday on Tuesday, said a dealer with a public sector bank.

Further, expectations of lower inflation data supported the sentiments of the currency, the dealer added.

In addition, domestic equity market posted its biggest gain in 2014 boosting the rupee. BSE-benchmark Sensex ended higher by 375.72 points (1.81 per cent) at 21,134.21 points at day’s close, while Nifty surged by 101.30 (1.64 per cnet) to close at 6272.75 points.

December CPI inflation number released on Monday stood substantially lower at 9.87 per cent (11.16 per cent in November), lowest since September.

Experts suggest this could keep the RBI away from hiking key interest rate further, by maintaining a status quo in the monetary policy on January 28, thereby supporting growth.

According to the dealer, the rupee is likely to trade between 61 to 62 per dollar in the week ahead.

Call rates, G-Secs

The inter-bank call money rate, the rate at which banks borrow short-term money from each other, ended higher at 8.75 per cent from Friday’s close of 8 per cent.

Yield on benchmark 8.83 per cent government bond, maturing in 2023, softened to 8.71 per cent from the previous close of 8.76 per cent. Prices ended higher at Rs 100.76 from Rs 100.45.

beena.parmar@thehindu.co.in

Published on January 13, 2014 10:51