Re at over five-month high on dollar selling

Rupee rose for the fourth consecutive day against the dollar on Wednesday to close at 52.16 which was five-and-a-half month high.

On Wednesday, it appreciated 24 paise. An analyst attributed this rise to dollar selling by exporters and hefty capital inflows in local stock market. “The rupee strengthened against the dollar on Wednesday because of inflows from foreign Institutional Investors (FIIs). Even IT companies and corporates sold dollars in the market which helped the rupee to gain,” said Sandeep Gonsalves, forex consultant and dealer, Mecklai & Mecklai.

FIIs pumped in over Rs 600 crore in stocks on Wednesday that helped the rupee, said market participants. The rupee has risen in the past four days on positive data on account of current account deficit and balance of payments, said forex dealers.

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

The 8.33 per cent G-sec maturing in 2026 climbed to Rs 100.66 from Rs 100.63 previously, while its yield held steady at 8.25 per cent.

Call rate ends lower
Call rates declined at the overnight money market due to lack of demand from borrowing banks. It ended lower at 8.05 per cent from 8.15 per cent previously. It moved in a range of 8.10 per cent and 7.70 per cent.