Rupee bounces back against dollar

The rupee on Monday bounced back by 26 paise to close at over one-week high of 54.50 compared with the dollar as government delayed the implementation of controversial GAAR and a fall in wholesale price index inflation for December gave hope to rate cut later this month. The currency’s upward movement was aided by dollar selling by exporters and some banks, amid a weak dollar overseas. “Rupee started appreciating after WPI for the month of December eased to 7.18 per cent. Government’s decision to defer GAAR till April 2016 also supported the positive sentiments in the market,” said Abhishek Goenka, founder and CEO, India Forex Advisors.

Call rates end higher
The call money rates ended higher at the overnight market here on Monday owing to good demand from borrowing banks.

The rate finished higher at eight per cent from 7.90 per cent previously. It moved in a range of 8.15 per cent and 7.95 per cent.

The Reserve Bank of India under the liquidity adjustment facility purchased securities worth Rs 968.30 billion in 33 bids at the one-day repo auction at a fixed rate of eight per cent and sold securities worth Rs 0.10 billion in one bid at the one-day reverse repo auction at a fixed rate of seven per cent in the evening auction.