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The rupee ended 5 paise higher at 63.25 against the dollar amid thin volumes and strong capital flows into the domestic equity markets.
The rupee opened almost flat at 63.31 as compared with Friday’s close of 63.30 per dollar.
The unit strengthened to 63.13 in the first half of the trading session backed by dollar selling by some foreign banks on behalf of their exporter clients.
However, dealers claim that state-owned banks bought dollars on behalf of the central bank, which is trying to recover some of the dollars it sold last week to limit the rupee fall.
Further, there were thin volumes of trades during the day due to the holiday season, which led to a narrow movement of 18 paise against the dollar. It moved between 63.13 and 63.31 at the Interbank Foreign Exchange market.
Call Rates, G-sec yields end flat
The overnight call money rates, the interest rates at which banks borrow from each other to overcome liquidity mismatches, ended almost flat at 8.05 per cent from the previous close of 8.00 per cent on Friday. Intra-day, it moved in the range of 7.50 per cent and 8.50 per cent.
The yields on the 10-year benchmark government security (8.40 per cent G-Sec, maturing in 2024) yield softened a tad to 7.95 per cent from Friday’s close of 7.96 per cent. The prices rose to Rs 102.93 from Rs 102.75.
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