In volatile trade, the rupee on Tuesday touched a fresh one-week high of 55.25 against the dollar but gave up most gains to close flat at 55.64 as exporters sold the American currency in view of strong overseas trends.
The rupee, which closed at 55.65 yesterday, resumed higher at 55.39 a dollar at the Interbank Foreign Exchange (Forex) market. Thereafter, it touched a high of 55.25 on dollar selling by exporters and initial firmness in local stocks. The rupee reversed its gains and fell back to the day’s low of 55.91.
Bonds remain firm
The uptrend in government securities (G-sec) was unabated on sustained buying by banks and corporates.
The 9.15 per cent G-sec maturing in 2024 gained further to Rs 105.94 from Rs 105.89, while its yield eased to 8.37 per cent from 8.38 per cent yesterday.
The 8.79 per cent G-sec maturing in 2021 also rose to Rs 102.94 from Rs 102.86 previously, while its yield softened to 8.33 per cent from 8.34 per cent.
Call rates improve further
Call money rates improved further at the overnight call money market on Tuesday on sustained shortage of funds in the banking system. The rate settled at 8.25 per cent, up from 8.20 per cent, before moving in a range of 8.30 per cent and eight per cent.
The rupee posted its biggest daily gain in three years on Friday after the government confirmed it will not impose retroactive taxes on foreign ...