The rupee on Wednesday recovered from three-month lows to close marginally higher by five paise at 51.42/43 against the US currency on fresh dollar selling by banks despite weak equity markets.
The rupee resumed lower at 51.51/52 per dollar at the Interbank Foreign Exchange (Forex) market, against the last close of 51.47/48. It dropped further to a three-month low of 51.7 on renewed dollar demand from importers, amidst weakness in local equity markets.
Later, it recovered to 51.38 per dollar before settling at 51.42/43 per dollar, showing a gain of five paise.
Fresh selling of dollars by banks and exporters in view of weak dollar in markets abroad mainly boosted the rupee's value against the dollar, a dealer said.
Bonds firm further, call rate recovers
Government securities (G-Sec) firmed up further on sustained buying support from banks and companies .
The 9.15 per cent (G-Sec) maturing in 2024 improved further to Rs 104.20 from Rs 103.84 yesterday, while its yield moved down to 8.60 per cent from 8.64 per cent. The 8.8 per cent (G-Sec) maturing in 2021 shot up to Rs 101.5650 from Rs 101.27, while its yield eased to 8.57 per cent from 8.59 per cent.
Meanwhile, call rates recovered at the overnight money market.
The overnight call money rate finished higher at 8.85 per cent from yesterday's close of 8.75 per cent. It moved in a range of 9.00 per cent and 8.60 per cent.