Rupee at 10-month high

The rupee on Thursday gained 39 paise to close at a nearly 10-month high of 59.29 against the dollar, following sustained selling of the American currency by exporters and continued capital inflows, ahead of keenly-awaited Lok Sabha poll results to be unveiled on Friday.

At the interbank foreign exchange (forex) market, the domestic unit commenced strong at 59.50 a dollar from the previous close of 59.68 and immediately touched a low of 59.62 on some hesitancy in local equities in morning deals.

Later, the rupee bounced back to a high of 59.10 before settling at 59.29 - level not seen since July 26, 2013 when it had closed at 59.04. On Thursday, the rupee rose 39 paise or 0.65 per cent over its Tuesday's close of 59.68. Forex markets were closed on Wednesday.

Government securities recovered slightly on stray demand from banks and corporates while call money rate tumbled on lack of demand from banks amid surplus of cash in the banking system.

The 8.83 per cent 10-year benchmark bond maturing in 2023 edged up to Rs 100.3075 from Rs 100.2925, while its yield held stable at 8.78 per cent.

The 8.28 per cent government security maturing in 2027 also rose to Rs 94.01 from Rs 93.9325, while its yield eased to 9.06 pct from 9.07 per cent.

The 7.28 per cent government security maturing in 2019 firmed up to Rs 94.10 from Rs 93.98, while its yield declined to 8.75 pct from 8.78 per cent. The 8.12 per cent government security maturing in 2020, the 8.35 per cent government security maturing in 2022 and the 8.24 per cent government security maturing in 2027 were also inched up to Rs 96.10, Rs 96.93 and Rs 93.84, respectively.