Re reverses losing trend, up 53 paise

The rupee on Tuesday reversed its four-day string of losses by gaining 53 paise to close at 55.39 as dollar supply outstripped demand in view of the US currency’s weakness with European Union leaders agreeing on terms for a bailout of Spanish banks.

The rupee resumed slightly higher at 55.90 per dollar as against yesterday’s closing level of 55.92 per dollar at the Interbank Foreign Exchange market on weak Asian markets after Chinese import growth slowed in June.

Bond rates end mixed
Government securities (G-sec) ended mixed on alternate bouts of buying and selling. The 9.15 per cent G-sec maturing in 2024 dropped to Rs 106.04 from Rs 106.07 yesterday, while its yield held steady at 8.35 per cent.

The 8.15 per cent G-sec maturing in 2022 declined at Rs 99.98 from Rs 100, while its yield held stable at 8.15 per cent.

The 8.33 per cent G-sec maturing in 2026 fell to Rs 100.4 from Rs 100.5, while its yield looked up to 8.29 per cent from 8.27 per cent.

Call rates stable
Call rates closed stable as demand from borrowing banks matched supplies. It ended stable at 8.1 per cent from the previous closing level. It moved in a range of 8.2 per cent and 7.5 per cent.