Rupee recovers to 63.11 vs dollar

Our Bureau | | Updated on: Mar 12, 2018

Indian currency

The rupee recovered over 50 paise on Thursday to close at 63.11 against the dollar on the back of heavy capital flows and cues from US Central Bank of no interest rate hikes before April.

The unit, which depreciated to a 13-month low of 63.89 on Wednesday, opened sharply higher to 63.31 in its opening trade driven by heavy inflows into the domestic equity markets backed by dollar selling by exporters and Cabinet nod to GST (Goods and Services Tax), which will be tabled in the Parliament in this session.

After slipping a tad to 63.38 per dollar on mild dollar buying from oil importers, the rupee strengthened to 63.10 against the dollar even as the American currency strengthened against some Asian currencies.

The appreciation was also aided by the US Federal Reserve chief’s comments that she is in no hurry to raise interest rates.

BSE-benchmark Sensex jumped over 500 points to close above 27,000 at 27,126 level, up by 416.5 points or 1.56 per cent over the previous close.

Call Rates, G-sec yields lower

Amid high liquidity, the overnight call money rates, the interest rates at which banks borrow from each other to overcome liquidity mismatches, closed lower at 8 per cent from Wednesday’s close of 8.50 per cent. Intra-day, it moved in the range of 8.00 per cent and 9.25 per cent.

The yields on the 10-year benchmark government security (8.40 per cent G-Sec, maturing in 2024) yield softened for the second straight day to 7.92 per cent from 7.96 per cent close on Wednesday. The prices rose to Rs 103.12 from Rs 102.84.

Published on December 18, 2014
COMMENTS
This article is closed for comments.
Please Email the Editor

You May Also Like

Recommended for you