Ahead of the RBI monetary policy, the rupee on Monday ended 30 paise stronger at 62.19 on the back of sustained selling of the US dollars by banks and exporters on hopes of good foreign capital inflows.

The RBI is likely to maintain a status quo in the key interest rates in the First Bi-monthly Monetary Policy Statement for 2015-16 on Tuesday, April 7, 2015.

Forex market last week remained closed on April 1, 2 and 3 for Annual account closing, Mahavir Jayanti and Good Friday respectively.

The domestic unit had ended 18 paise higher at 62.49 per dollar on Tuesday.

It opened at 62.10 per dollar on Monday and thereafter weakened to 62.23 during the day.

However, besides dollar selling by exporters and banks, weakness in the dollar against other currencies supported the rupee, which recovered to 62.19, dealers said.

Moreover, a sharp capital inflow towards the second half session of trading in the domestic equity market strengthened the rupee, they added.

BSE-benchmark Sensex jumped 244 points (0.86 per cent) to end at 28,504.46.

Bond yield softens; Call Rate slumps

The yield on 10-year benchmark 8.40 per cent Government security maturing in 2024, softened a tad to 7.72 per cent as against a close of 7.73 per cent last Tuesday. During the day, the yields moved in a narrow range of 7.70 to 7.72 per cent.

The price of the security rose to Rs 104.43 from Rs 104.32. The prices and yields of bonds move in opposite direction.

Fluctuating widely on the last day of the financial year, the interbank call money rate, rate at which banks lend each other to meet overnight liquidity mismatches, closed weaker at 6.25 per cent from the previous close of 7.80 per cent. Intra-day, it moved between 6.25 to 7.60 per cent range.