The rupee continued its downslide for the third day in a row and declined by 19 paise to end at 56.15, its second lowest closing in history, against the US currency as cautious importers bought dollars in late trade ahead of outcome from the key US Federal Reserve meeting. At the Interbank Foreign Exchange (Forex) market, the domestic unit opened higher at 55.92 a dollar from previous close of 55.96.
Bonds end mixed
The government securities (G-Sec) ended mixed on alternate bouts of buying and selling. The 8.15 per cent G-Sec maturing in 2022 moved down to Rs 100.24 from Tuesday’s level of Rs 100.26, while its yield held steady at 8.11 per cent. The 8.19 per cent G-sec maturing in 2020 softened to Rs 99.52 from Rs 99.53, while its yield ruled stable at 8.27 per cent.
Call rates recover
Call rates recovered on the overnight call money market due to fresh demand from borrowing banks following limited liquidity in the banking system. The overnight call money rate finished higher at 8.10 per cent from Tuesday’s closing level of eight per cent. It moved in a range of of 8.3 per cent and 8.1 per cent. Reserve Bank of India (RBI) under LAF purchased securities worth Rs 1,25,340 crore from 49 bids at the one-day repo auction at a fixed rate of 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 ...