Forex

Rupee settles higher at 54.17

Our Bureau Mumbai | Updated on March 12, 2018 Published on March 25, 2013

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Paring initial gains, the rupee settled at 54.17 against the dollar due to domestic political uncertainty and month-end dollar demand. The Indian unit still ended 16 paise higher from Friday’s close of 54.33.



Intra-day, the rupee touched a high of 54.05 in the early trades on the back of Finance Minister P Chidambaram’s statements on Saturday calling for ease in restrictions for foreign institutional investors in government and corporate bonds next month. This would attract inflows and help fund the widening current account deficit.



The euro also gained after Cyprus arrived at a deal with international lenders for a bailout to save itself from the debt crisis.



However, before recovery, the rupee touched a low of 54.35. Month-end demand for the American currency is likely to put further pressure on the rupee.



Call Rates and G-Secs



The interbank call money rates ended sharply higher at 7.75 per cent from their previous close of 7.40 per cent on Friday. The call money market moved in the range of 7.00 to 7.95 per cent amid higher liquidity in the system due to financial year-end.



The 8.15 per cent government security, which matures in 2022, closed higher at Rs 101.28 from Friday’s close at Rs 101.19. The yields declined to 7.94 per cent from 7.96 per cent.

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Published on March 25, 2013
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