Re rallies for third day, up 8 paise to 53.22 vs $

Rising for a third straight session, the rupee on Thursday ended at a three-and-a-half-month high of 53.22, up eight paise against the dollar on sustained foreign fund inflows amid sharp recovery in euro. Forex dealers said continued dollar demand from oil refiners to meet their month-end requirements and weakness in local equities capped rupee’s gains to some extent. The local unit commenced better at 53.26 against the dollar from yesterday’s close of 53.30 at the Interbank Foreign Exchange market.

It touched a high of 53.07 and later succumbed to 53.37 on month-end dollar demand from oil importers, before settling at 53.26, a gain of eight paise, or 0.15 per cent. The local unit has flared up by 177 paise, or 3.22 per cent, in January.

Bonds remain bearish
Government bonds remained bearish on sustained selling pressure from banks and companies. The 8.15 per cent government security maturing in 2022 slipped to Rs 101.54 from Rs 101.68 yesterday, while its yield moved up at 7.91 per cent from 7.89 per cent. The 8.33 per cent government security maturing in 2026 dropped to Rs 102.54 from Rs 102.70, while its yield rose to 8.02 per cent from eight per cent. The 8.20 per cent government security maturing in 2025 dipped to Rs 101.48 from Rs 101.66, while its yield inched up at eight per cent to 7.99 per cent. The 8.07 per cent government security maturing in 2017, the 8.12 per cent government security maturing in 2020 and 8.97 per cent government security maturing in 2030 were also quoted lower at Rs 100.67, Rs 101.35 and Rs 107.95, respectively.

Call rates end lower
Overnight rates also ended lower at the call money market here on Thursday, on lack of demand from borrowing banks.

The rate finished lower at 7.80 per cent from 7.85 per cent previously. It moved in a range of 7.90 per cent and 7.60 per cent. The Reserve Bank of India under the liquidity adjustment facility purchased securities worth Rs 1,04,115 crore in 41 bids at the one-day repo auction at a fixed rate of 7.75 per cent and sold securities worth Rs 5 crore in one bid at the one-day reverse repo auction at a fixed rate of 6.75 per cent.