Re gains 16 paise on capital inflow hopes

Rising for a second day, the rupee on Thursday appreciated by 16 paise to close at one-week high of 54.56 against the dollar on hopes of robust capital inflows in view of a series of public sector undertaking share sales, starting with Rashtriya Chemicals and Fertilizers tomorrow.

Continued dollar selling by exporters and some banks, as also a weak dollar abroad ahead of the European Central Bank's monthly policy meet late on Thursday, boosted the rupee, foreign exchange dealers said. At the Interbank Foreign Exchange market, the domestic unit commenced lower at 54.87 a dollar from the previous close of 54.72 and immediately touched a low of 54.91 on early hesitancy in local stocks.

Bonds close mixed
Government securities (G-sec) closed mixed on alternate bouts of buying and selling.

The 8.33 per cent G-sec maturing in 2026 moved down to Rs 103.08 from Rs 103.11 yesterday, while its yield held steady at 7.95 per cent. The 8.15 per cent G-sec maturing in 2022 edged down to Rs 101.85 from Rs 101.8625, while its yield also ruled stable at 7.86 per cent. However, the 8.20 per cent G-sec maturing in 2025 gained to Rs 101.98 from Rs 101.96, while its yield held steady at 7.95 per cent. The 8.12 per cent G-sec maturing in 2020 rose to Rs 101.61 from Rs 101.59, while its yield remained stable at 7.84 per cent.

Call rates end lower
Call money rates finished lower due to lack of demand from borrowing banks, amidst ample liquidity. The rate finished lower at 7.85 per cent from the previous closing level of 7.90 per cent. It moved in a range of eight per cent and 7.60 per cent.