Rupee extends retreat from four-month high

The rupee extended a retreat from its highest level in four months on speculation that importers boosted dollar purchases to settle bill payments. The rupee declined 0.3 per cent to 53.52 per dollar in Mumbai, according to data compiled by Bloomberg. It touched 53.06 on September 24, the strongest level since May 10.

Bond rates end mixed
Government securities (G-sec) ended mixed on alternate bouts of buying and selling.

The 8.33 per cent G-sec maturing in 2026 declined to Rs 100.43 from Rs 100.46 yesterday, while its yield held steady at 8.27 per cent. The 8.15 per cent G-sec maturing in 2022 edged down to Rs 99.86 from Rs 99.86, while its yield held stable at 8.17 per cent. However, the 8.20 per cent G-sec maturing in 2027 gained to Rs 100.05 from Rs 99.97, while its yield inched down to 8.19 per cent from 8.20 per cent.

Call rate also finish lower
Call rates at the overnight money market declined on Wednesday due to lack of demand from borrowing banks.

The rate finished lower at eight per cent from yesterday’s closing level of 8.05 per cent. It moved in a range of 8.10 per cent and 7.95 per cent. The Reserve Bank of India under the Liquidity Adjustment Facility purchased securities worth Rs 565 billion in 25 bids at the one-day repo auction, at a fixed rate of eight per cent.