Rupee ends little changed, yields fall

The rupee ended little changed on Thursday as caution prevailed ahead of a slew of economic data, while dollar demand from state-run banks, which traders attributed to defence and petroleum-related payments, weighed on sentiment.

The rupee ended at 60.07 compared with the previous close of 60.14 a dollar. The rupee had opened at 60.05 and during intra-day trades it touched a high of Rs 60.04 and a low of 60.30.

The data, starting with industrial output on Friday and consumer inflation on Tuesday, come as voting gets underway in general elections.

The Reserve Bank of India (RBI) reiterated on Thursday it did not have a target for the rupee. "RBI is committed to a flexible exchange rate regime," said Rudra Narayan Kar, chief general manager in charge.

Government securities rose on sustained buying support from banks and companies, while the overnight call money market rate slipped further due to a lack of demand from banks.

The 8.83 per cent government security maturing in 2023 advanced to Rs 98.89 from Rs 98.6975, while its yield fell to nine per cent from 9.03 per cent. The overnight rate ended lower at 7.01 per cent from 8.15 per cent on Wednesday and it moved in a range of 8.25 per cent and 7.00 per cent.