Rupee settles higher at 61.96 vs dollar

| | Updated on: Dec 23, 2013
image caption

The rupee ended a tad higher at 61.96 against the dollar, a one-week high due to mild dollar outflows from exporters and banks on Monday.

The domestic unit opened marginally stronger at 62 per dollar against the previous close of 62.03 on Friday owing to firm domestic equity market and foreign inflows.

During the day, the rupee gained 23 paise to 61.80 on stable inflows and positive equity markets.

“Exporters are hedging their positions with some dollar selling towards the end of the quarter. Also, the RBI is ensuring the volatility remains under control. RBI is said to have bought about $7 billion dollars around 61 levels. The effort to get inflows to match the outflows has stabilised the rupee,” said a dealer with a public sector bank.

Meanwhile, BSE-benchmark Sensex ended higher by 21.31 points (0.10 per cent) at 21,101.03 points.

Further, the RBI maintained that it would take care not to over-tighten the monetary policy though a higher inflation could result in some action on tightening the policy going forward. A tighter policy is likely to have a downward bias on the markets.

Call Rates and G-secs

The inter-bank call money rates, the rates at which banks borrow short-term funds from each other, ended a tad weaker at 8.75 per cent against Friday’s close of 8.78 per cent.

The widely traded 8.83 per cent government security, which matures in 2023, closed lower at Rs 100.07 from the previous close of Rs 100.20. Yield on the security hardened to 8.81 per cent from 8.79 per cent. Bond prices and yields move in the opposite direction.

Published on March 12, 2018

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor

You May Also Like

Recommended for you