The rupee wiped out initial gains and closed unchanged at 62.50 against the dollar on Tuesday amid alternate bouts of demand and supply of dollars.

The domestic unit soared to 62.28/$ after it opened higher at 62.45 from the overnight close of 62.50 on sustained dollar sales by exporters.

However, the gains were restricted and the rupee fell to a low of 62.53 due to month-end dollar demand form importers.

“The gains were mainly attributed to the slight weakness in the US dollar and recovery in the euro. However, the currency could not sustain its gains for long as the benchmark indices posted losses today and dollar demand seemed to have returned to the market,” said Abhishek Goenka, CEO of India Forex Advisors.

Call rate flat

The overnight call money rate, the rate at which banks borrow short-term funds from each other, ended flat from the previous close of 8.70 per cent. The call money market has largely remained flat over the last week.

Bond yields ease

The yield on the 10-year benchmark government security, 7.16 per cent maturing in 2023, softened to 9.04 per cent from Monday’s close of 9.08 per cent.

The yield on widely traded 8.83 per cent security maturing in 2027, ended a tad softer at 8.73 per cent from 8.75 per cent.

The price of 8.28 per cent security, maturing in 2027, ended higher at Rs 93.40 from Rs 93.22. The yield softened to 9.12 per cent from 9.15 per cent.