The rupee on Wednesday appreciated by 28 paise to close at a one-week high of 55.37 against the dollar, amid a surge in local stocks and dollar selling by exporters and banks.
Strength in the euro abroad, where it was up 0.3 per cent against the dollar at $1.25, also boosted the sentiment in favour of the rupee. Globally, investors returned to assets such as stocks, as they anticipated a monetary stimulus signal from the ECB meeting on Wednesday, in a bid to restore confidence in the troubled euro zone.
The rupee on Wednesday opened strong at 55.41 from the overnight close of 55.64 at the Interbank Foreign Exchange market. It touched a low of 55.61 in late morning deals, but a sudden rise in Indian shares and dollar selling by exporters and banks helped the rupee to rebound. The rupee touched a high of 55.32 and finally closed at 55.37.
Call rate ends lower
Government bonds declined on selling pressure from banks and companies, while call rates also ended lower at the overnight call money market due to lack of demand from borrowing banks, amid ample liquidity in the banking system. The 9.15 per cent government security maturing in 2024 dropped to Rs 105.66 from Rs 105.95 yesterday, while its yield rose to 8.41 per cent from 8.37 per cent. The call money rate finished lower at 8.15 per cent from 8.25 per cent yesterday. It hovered in a range of 8.25 per cent and eight per cent.