Rupee gains 37 paise, ends at 62.50 vs dollar

The rupee rose 37 paise to end stronger at 62.50 against the US dollar on Monday due to a drop in oil prices and persistent selling of the American dollar by exporters and banks.

“Dollar inflows by corporates and fall in oil prices overseas following a key deal between world powers and Iran on its controversial nuclear programme boosted the rupee sentiments,” said a public sector bank’s forex dealer.

The domestic unit opened at 62.67 per dollar against Friday's close of 62.87 at the Interbank Foreign Exchange.

Further, a stronger domestic equity market also supported the local currency. The BSE-benchmark Sensex soared by 387.69 points (1.92 per cent) ended higher at 20,605.08 points at day’s close.

Intra-day, the Indian currency moved in the 62.44 to 62.69 per dollar range.

“The rupee is likely to remain range-bound with a downward bias due to the month-end dollar demand from importers. It is likely to trade at about 62 to 63 per dollar range during the week ahead,” the dealer said.

CALL RATES, G-SECS

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.

The price of 8.28 per cent security, maturing in 2027, ended weaker at Rs 93.22 from Friday’s close of Rs 93.45. The yield hardened to 9.15 per cent from the previous close of 9.12 per cent. The yield on the 10-year benchmark government security, 7.16 per cent maturing in 2023, softened a tad to 9.08 per cent from 9.09 per cent.

Beena.parmar@thehindu.co.in

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