The rupee on Wednesday ended six paise higher at 61.63 against the dollar to extend its gains for the fifth straight day on sustained selling of the US currency by banks and exporters in view of strong capital inflows. Forex traders said strong equity markets mainly supported sentiment in the the rupee as the benchmark BSE Sensex rose a further 104.19 points.

Pramit Brahmbhatt, Veracity Group CEO, said FIIs continued to pour money into the market and some banks were also seen selling dollars which helped the rupee to trade strong against the dollar.

Bond yields, call rates dip

Government bonds (G-Secs) surged further on sustained buying support from banks and corporates, while the overnight call money rate remained lower at the money market due to lack of demand from borrowing banks amid ample liquidity in the banking system. The 8.40 per cent government security maturing in 2024 climbed to ₹104.72 from ₹104.50 previously, while its yield eased to 7.69 per cent. The overnight call money rates ended lower at 7.75 per cent from yesterday’s closing level of 7.85 per cent.

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