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The rupee further strengthened to 58.75 a dollar on Thursday as the central bank’s liquidity draining measures started showing results. The domestic unit ended a tad higher at 59.11 on Thursday, against the previous close of 59.15. The RBI paid yields of 11.17-11.20 per cent on its Rs 5,200-crore sale of cash management bills, which followed a Rs 12,000 crore sale of treasury bills on Wednesday.
“The RBI measures are finally showing some results. The rupee has strengthened in the last two days. We may also see some more announcements by the RBI to stabilise the currency,” said a dealer from a public sector bank.
Call rates and G-Sec yields rise
Inter-bank call money rates ended lower at 6.3 per cent from the previous close of 7 per cent. “Repo and interbank call money rates are likely to jump. Call money rates are likely to jump to at least 10.25 per cent next week,” said S. Srinivasaraghavan, Executive vice-president and Head, Treasury, Dhanlaxmi Bank.
The 7.16 per cent benchmark government security (G-Sec), which matures in 2023, ended sharply higher at Rs 93.11 from the previous close of Rs 91.65 . Yields softened sharply to 8.19 per cent from previous close of 8.42 per cent.
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