The rupee on Wednesday strengthened by 14 paise to close at 66.41 against the US dollar on persistent selling pressure from banks and exporters amid hopes of resumption of foreign capital inflows into equity markets. The domestic unit resumed sharply higher at 66.38 against Tuesday’s closing of 66.55 at the forex market. It hovered in the 66.24-66.46 range before closing at 66.41. The domestic currency has gained 41 paise, or 0.62 per cent, in the last two trading sessions.
Bond yields flat; call rate drops
Government bonds surged on continuous buying support from banks and corporates, but the overnight call money rate closed lower on lack of demand from borrowing banks due to adequate liquidity in the banking system. The 7.72 per cent government security maturing in 2025 climbed to ₹99.67 from ₹99.64, while its yield held steady at 7.77 per cent. The call money rates finishedlower at 6.50 per cent from Tuesday’s closing of 8.20 per cent. It resumed lower at 7.10 per cent and moved in a range of 6.25-7.50 per cent.