Re gains 30 paise on fresh dollar selling

Snapping a five-session losing streak, the rupee on Wednesday gained 30 paise to close at 54.55 against the dollar on fresh selling of the US currency by banks and exporters, and hopes of more capital coming into banking after Parliament passed the Banking Bill.

Forex dealers said signs of persistent foreign capital inflows also helped the rupee to bounce back. A sharp recovery in euro against the dollar in the global market also buoyed the local currency, they added.

The local currency hovered in a range of 54.51-54.93 at the Interbank Foreign Exchange market, before settling at 54.55 against the dollar, a gain of 30 paise, or 0.55 per cent, from its previous close, they added.

Bonds react downward
Government bonds reacted downwards on fresh selling pressure from banks and companies. The 8.33 per cent government security maturing in 2022 declined to Rs 100.75 from Rs 100.80 previously, while its yield held inched up to 8.24 per cent from 8.23 per cent.

Call rates end higher
Overnight money rates ended higher at the market here on Wednesday on good demand from borrowing banks.

The rate finished higher at 8.13 per cent from 8.10 per cent previously. It moved in a range of 8.15 per cent and 7.95 per cent.