Money & Banking

Rupee ends higher

| Updated on: Jan 01, 2014

Paring initial losses, the rupee ended stronger at 62.16 against the dollar on Friday as the central bank is believed to have intervened in the market by asking banks to sell dollars. The Indian unit opened weaker at 62.38 due to a stronger American currency and a weaker domestic equity market. It had closed at a one-month low at 62.26 on Thursday.

The rupee further declined to 62.55 during the day as the dollar held steady at a two-week high against overseas currencies after positive US economic data that reinforced expectations that the US central bank will continue the already announced tapering of the quantitative fiscal stimulus.

However, after the reported intervention by the Reserve Bank of India through banks at the 62.50 level, the rupee recovered to trade at 62.14 in the late afternoon trading session.

Meanwhile, the equity market was weaker with BSE-benchmark Sensex ending lower by 37 points (0.18 per cent) at 20,851.33 points at day’s close.

Call rates rise, bonds yields dip

The interbank call money rates, the rate at which banks borrow short-term money from each other, closed higher at 7.65 per cent from Thursday’s close of 6.78 per cent.

The yield on benchmark government security 8.83 per cent (maturing in 2023) ended a tad softer at 8.83 per cent from previous close of 8.84 per cent compared with previous close. The price of the security ended at Rs 99.95 (from Rs 99.92 on Thursday).

Published on January 03, 2014

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