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The rupee on Tuesday recovered its initial sharp losses in line with the local equities and late dollar demand, still it ended lower by three paise against the US currency.
A weak dollar overseas amid early fall in local equities and fresh capital outflows led the rupee to resume down at Rs 44.55/56 a dollar from Rs 44.45/46 at the Interbank Foreign Exchange market.
The RBI has fixed the reference rate for the dollar at Rs 44.68 and the euro at Rs 63.53.
Call declines further
Call rates declined further to close at 6.50 per cent at the overnight call money market here on Tuesday on surfeit of liquidity in the banking system. The overnight call money rate finished lower at 6.50 per cent from Monday's closing level of 6.85 per cent. It moved in a range of 6.85 per cent and 6.25 per cent.
The RBI, under the Liquidity Adjustment Facility, purchased securities worth Rs 1,705 crore from eight bids at the one-day repo auction at a fixed rate of 6.75 per cent.
Bonds end mixed
The government bond closed mixed on alternate bouts of buying and selling. The 8.08 per cent government security maturing in 2022 firmed up to Rs 98.85 from Rs 98.73 on Monday, while its yield softened to 8.24 per cent from 8.25 per cent.
The 8.13 per cent government security maturing in 2022 rose to Rs 99.35 from Rs 99.20, while its yield moved down to 8.22 per cent from 8.24 per cent and the 8.26 per cent government security maturing in 2027 also quoted higher at Rs 98.20 from Rs 98.15 previously.
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