Re at 3-1/2 month's closing high

The rupee strengthened to its highest closing level in three-and-a-half months on Tuesday, helped by foreign inflows ahead of the government stake sale in state-run power producer NPTC, although weak domestic shares and demand for the greenback from oil importers limited gains.

The partially convertible rupee closed at 53.14/15 a dollar, its strongest closing level since October 17, and versus its previous close of 53.29/30, after moving in a 53.07 to 53.42 range during the day.

Bonds recover on good demand
Government securities (G-sec) rose on good buying support from banks and companies.

The 8.15 per cent G-sec maturing in 2022 rose to Rs 101.46 from Rs 101.37 yesterday, while its yield moved down to 7.92 per cent from 7.94 per cent. The 8.20 per cent G-sec maturing in 2025 shot up to Rs 101.52 from Rs 101.34, while its yield edged down to 8.01 per cent from 8.03 per cent. The 8.33 per cent G-Sec maturing in 2026 also surged to Rs 102.57 from Rs 102.42, while its yield eased to 8.01 per cent from 8.03 per cent.

Call rates end lower
Call rates ended lower due to lack of demand from borrowing banks. The rate finished lower at 7.80 per cent from yesterday’s close of 7.85 per cent. It moved in a range of 7.85 per cent and 7.60 per cent.