Re rebounds on dollar sales, capital inflows

Snapping a two-session losing string, the rupee on Tuesday bounced back by 22 paise to end at 54.26, on the back of fresh dollar selling by exporters and capital inflows worth $250 million. At the Interbank Foreign Exchange market, the local unit resumed higher at 54.40 a dollar from overnight close of 54.48, but declined immediately to a low of 54.46. However, emergence of dollar selling by exporters on hopes of fall in dollar abroad helped the rupee to bounce back.

Bonds remain weak
Government bonds remained weak on sustained selling pressure from banks and companies. The 8.15 per cent government security maturing in 2022 declined to Rs 99.82 from Rs 99.86 previously, while its yield inched up at 8.18 per cent from 8.17 per cent.

Call rates end higher
The overnight rates ended higher at the money market here on Tuesday, on good demand from borrowing banks. The rate finished higher at eight per cent from 7.90 per cent previously.