The rupee recovered smartly by 17 paise to close at 44.33/34 against the US dollar on the back of fresh sale of dollars, amid capital inflows despite weak equities. Alpari Forex (India) CEO, Mr Pramit Brahmbhatt, said: “Today local equities extended its fall after the inflation data showed bigger jump than what economists estimated. Looking at the weak equity market one can expect the rupee to gain against greenback.” The rupee premium for the forward dollar closed sharply higher on fresh paying pressure from banks and corporates. The benchmark six-month forward dollar premium payable in September finished strong at 148-150 paise from 142-144 paise on Wednesday. —

Bonds drop on selling pressure

The government bond prices dropped further due to persistent selling pressure from banks and corporates. The 8.08 per cent government security maturing in 2022 declined to Rs 98.80 from 99.07 previously, while its yield moved up to 8.24 per cent from 8.21 per cent. The 7.80 per cent government security maturing in 2021 dropped to Rs 98.71 from Rs 99.10, while its yield rose to 7.99 per cent from 7.93 per cent. The 8.13 per cent government security maturing in 2022 fell to Rs 99.21 from Rs 99.51, while its yield firmed up to 8.24 per cent from 8.20 per cent. —

Call rate improves

Call rates improved further to close at 6.90 per cent at the overnight call money market here on Friday on sustained buying support from borrowing banks. The overnight call money rate finished slightly higher at 6.90 per cent from Wednesday's closing level of 6.85 per cent. It moved in a range of 6.90 per cent and 6.70 per cent. The RBI, under the Liquidity Adjustment Facility, purchased securities worth Rs 3,875 crore from 12 bids at the three-day repo auction at a fixed rate of 6.75 per cent. —

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