Rupee ends10 paise stronger at 58.94

Beena Parmar Mumbai | Updated on March 12, 2018 Published on May 28, 2014


Paring initial losses, the Indian rupee ended 10 paise stronger at 58.94 against the dollar as exporters sold dollars.

The rupee posted its biggest single-day fall in more than two months on Tuesday ending at 59.04 to the dollar.

On Wednesday, the domestic unit opened weaker at 59.11 due to month-end dollar demand from oil importers and capital outflows by foreign funds.

The rupee further declined to 59.22 during the day as a stronger US dollar against other Asian currencies also weighed on the rupee.

“However, public sector banks sold dollars on behalf of the exporters which helped the rupee recover to 58.82 in the second half of the trading session,” a dealer with a public sector bank said.

Intra-day, the rupee moved 40 paise against the greenback.

State-owned banks have been buying the US currency for the last few days, most likely on behalf of the RBI,  limiting the sharp appreciation in the rupee.

Market investors will keenly watch for the monetary policy by the RBI next week. RBI Governor Raghuram Rajan has maintained the policy is likely to be inflation-targeting hinting at a hawkish policy stance.

Call rates fall, G-secs yields rise

The overnight call money rate (the rate at which banks borrow money from each other to overcome short-term liquidity mismatches) ended lower at 7.10 per cent from its previous close of 7.75 per cent.

The yield on the benchmark 8.33 per cent, maturing in 2023, hardened slightly to 8.70 per cent from Tuesday’s close of 8.67 per cent. The price of the security decreased to Rs 100.81 from Rs 101. Bond yields and prices move in opposite directions.

Published on May 28, 2014
This article is closed for comments.
Please Email the Editor