Re closes higher on rally in equities

A strong dollar weighed on the rupee but the local currency managed to erase early losses and settle three paise higher at 54.78, amid signs of massive capital inflows. The rupee commenced weak at 54.86 a dollar and moved down further to a low of 54.91 at the Interbank Foreign Exchange market, on initial dollar demand from importers. It, however, bounced back on a rally in local stocks to a high of 54.65 a dollar.

Bonds maintain its uptrend
Government securities (G-Sec) surge on consistent demand from banks and companies. The 8.15 per cent government security maturing in 2022 climbed to Rs 104.50 from Rs 104.40 previously, while its yield edged down to 7.46 per cent from 7.47 per cent. The 8.33 per cent government security maturing in 2026 firmed up to Rs 107.01 from Rs 106.70, while its yield fell to 7.52 per cent from 7.48 per cent. The 8.20 per cent government security maturing in 2025 also shot up to Rs 105.80 from Rs 104.49, while its yield moved down at 7.47 per cent from 7.49 per cent.

Call rates end higher

Call money rates recovered here on Wednesday due to fresh demand from borrowing banks.

The rate finished higher at 7.30 per cent from yesterday's closing level of 7.25 per cent. It moved in a range of 7.35 per cent and 7.15 per cent.