The rupee closed stronger at 62.15 against the dollar as banks and exporters sold the American currency amid uncertainty in the US about the $85-billion-a-month fiscal stimulus.
On late Tuesday evening, a survey revealed that the consumer confidence index in the US dipped as more Americans remained uncertain about job prospects.
The dollar index, measured against a basket of the world’s major currencies, was trading lower at 80.53 from the previous close of 80.61.
This also aided the Indian unit.
The rupee had closed at 62.50 on Tuesday. Intraday, the Indian unit moved in a narrow range of 62.15 to 62.45.
Abhishek Goenka, Founder and CEO, India Forex Advisors, said: “The rupee continued with its gains against the US dollar in the fourth straight session. Yesterday’s economic reports from the US were quite mixed with consumer confidence tumbling and the housing market showing a recovery. The uncertainty regarding QE tapering continues to prevail in the market.”
Call rates, bond yields drop
The overnight call money rate, the rate at which banks borrow short-term funds from each other, ended lower at 8.50 per cent from the previous close of 8.70 per cent. The yield on the 10-year benchmark government security (7.16 per cent maturing in 2023) softened to 9 per cent from Tuesday’s close of 9.04 per cent. The price on the security rose to Rs 88.45 from the previous close of Rs 88.18.