Rupee closes at 54.27 on dollar selling

Gains three paise against the dollar in line with strong local equities

The rupee on Tuesday gained three paise to close at 54.27 against the dollar in line with strong local equities amid some selling of the US currency by exporters. But, foreign investors pulling out funds from domestic stocks and a firm dollar abroad capped rupee's gains to some extent, forex dealers said.

Bonds remain bearish
Government bonds remained bearish on selling pressure from banks and companies.

The 8.15 per cent government security maturing in 2022 dropped to Rs 100.99 from Rs 101.26 last Thursday, while its yield moved up at 7.99 per cent from 7.95 per cent.

Call rates end lower

Overnight money rates ended lower due to lack of demand from borrowing banks amid ample liquidity in the banking system. The rate finished lower at seven per cent from 8.50 per cent previously.