Rupee bounces back from 11-month lows

Ends with hefty 32-paise gain at 56.45 against dollar on heavy selling of American currency by exporters

Snapping its five-day losing run, the rupee today rebounded from 11-month lows to close with a hefty 32-paise gain at 56.45 against the dollar on heavy selling of the American currency by exporters amid signs of FII inflows.

The rupee derived strength from speculation the government was likely to raise soon the cap on foreign institutional investors in G-secs by $5 billion, which will lead to more inflows.

Bonds rise on fresh buying
Government bonds securities rose on fresh demand from banks and companies. The 8.33 per cent government security maturing in 2026 declined to Rs 107.48 from Rs 107.53 previously, while its yield inched up to 7.43 per cent from 7.42 per cent. The 8.20 per cent government security maturing in 2025 fell to Rs 106.24 from Rs 106.28, while its yield edged up to 7.42 per cent from 7.41 per cent. The 8.15 per cent government security maturing in 2022 also went down to Rs 104.49 from Rs 104.58, while its gained to 7.46 per cent from 7.44 per cent.

Call rates end lower
Call rates ended lower due to lack of demand from borrowing banks. The rate finished lower at 7.25 per cent from yesterday's closing level of 7.30 per cent. It moved in a range of 7.35 per cent and 7.15 per cent.