Tracking the domestic stock market movement, the Rupee on Tuesday breached the key 56-level against the dollar in early trade but recovered some losses to close at 55.80, still down six paise, after RBI intervention.
After closing at 55.74 yesterday, the rupee opened lower at the Interbank Foreign Exchange (Forex) Market on persistent dollar demand amid a stronger trend abroad.
The rupee touched a nearly one-week low of 56.08 intra-day as dollar demand from companies rose.
With rupee breaching the 56-level, forex dealers said RBI sold some dollars helping rupee recoup some losses as the currency settled at 55.80.
Bonds shoot up
Government securities (G-sec) shot up further on sustained demand from banks and companies. The 9.15 per cent G-sec maturing in 2024 surged to Rs 106.43 from Rs 105.93 yesterday, while its yield dropped to 8.31 per cent from 8.37 per cent.
The 8.79 per cent G-sec maturing in 2021 climbed to Rs 103.18 from Rs 102.95, while its yield fell to 8.29 per cent from 8.33 per cent.
Call rates ease
Call rates eased at the overnight call money market on Tuesday on lack of demand from borrowing banks. The overnight call money rate ended slightly lower at 8.05 per cent from yesterday’s close of 8.10 per cent, it moved in a range of 8.20 per cent and eight per cent.