Forex

Rupee gains 12 paise, closes stronger at 61.95

Priya sundarajan | | Updated on: Feb 25, 2014

Gaining for the third straight day, the rupee ended 12 paise stronger at 61.95 against the dollar as the exporters sold the American dollars amid high capital inflows.

The domestic unit had closed at 62.06 against the greenback on Monday.

It opened at 61.95 on persistent dollar inflows into the Indian markets supporting the Indian currency.

“Apart from dollar inflows, exporters also sold dollars in the market,” said a dealer with a public sector bank.

The rupee gained to 61.88 levels in the early trades before declining marginally to 62.04 during the day.

Further supporting the rupee, the BSE-benchmark Sensex ended higher by 41 points (0.20 per cent) at 20,852 points at day’s close.

During the day, the rupee moved 16 paise in a narrow range of 61.88 to 62.04 against the dollar.

According to the dealer, the market is comfortable at these levels. “We see the rupee moving in the 61.70 to 62.40 per dollar range during the week ahead,” he said.

Call Rate eases; Bonds flat

The inter-bank call money rate, the rate at which banks borrow money from each other to meet short-term requirements, ended weaker at 7.30 per cent from a close of 7.70 per cent on Monday.

Yield on the 10-year benchmark 8.83 per cent Government security, maturing in 2023, softened a tad to 8.87 per cent from its previous close of 8.88 per cent. Bond prices rose marginally to Rs 99.69 from Rs 99.62.

Bond prices and yields move in the opposite direction.

Published on February 25, 2014

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