Re logs biggest jump in two weeks

The rupee on Wednesday appreciated a robust 23 paise, its biggest gain in two weeks, to settle at 54.20 on the back of capital inflows and dollar selling by exporters, amid hopes that US President Barack Obama will allow the US Fed to maintain its quantitative easing programme. Weakness in the dollar against major rivals in foreign markets also helped the rupee rally, forex dealers said. At the Interbank Foreign Exchange (Forex) market, the domestic unit resumed higher at 54.29 a dollar from the previous close of 54.43. It improved further to a high of 53.96 on sustained dollar selling by exporters and some banks.

Bonds react downwards
Government bonds reacted downwards on selling pressure from banks and companies.

The 8.33 per cent government security maturing in 2026 dropped to Rs 100.32 from Rs 100.37 previously, while its yield inched up at 8.29 per cent from 8.28 per cent.

The 8.15 per cent government security maturing in 2022 fell to Rs 99.72 from Rs 99.77, while its yield edged up at 8.19 per cent from 8.18 per cent.

Call rates finish lower
Call rates at the overnight market finished lower due to lack of demand from borrowing banks. The rate ended lower at 8.10 per cent from 8.15 per cent yesterday. It moved in a range of 8.15 per cent and 7.80 per cent.