Rupee falls again, reverses initial gains

Reversing its initial gains, the rupee on Wednesday fell 31 paise to close at 51.78/79 against the US currency following strong dollar demand from importers.

The dollar strengthened in the markets abroad which dampened the rupee sentiments, a dealer said.

At the Interbank Foreign Exchange (Forex) market, the domestic unit opened higher at 51.38/39 a dollar from overnight close of 51.47/48 and immediately touched a high of 51.35 on renewed selling of dollars by banks and exporters.

But, late it reacted downwards to close at 51.78/79 per dollar, showing a loss of 31 paise or 0.60 per cent on fresh dollar demand from importers amidst firm dollar overseas. The BSE benchmark Sensex ended higher by 34.45 points or 0.20 per cent on Wednesday.

Bonds settle mixed, call rate declines
Government securities (G-Sec) settled mixed on alternate bouts of buying and selling, while call rate declined further at the overnight call money market here on Wednesday due to lack of demand from borrowing banks.

The 8.79 per cent G-Sec maturing in 2021 reacted downwards to Rs 102.7925 from yesterday's close of Rs 102.91, while its yield moved up to 8.36 per cent from 8.34 per cent. The 9.15 per cent G-sec maturing in 2024 dropped to Rs 105.4175 from Rs 105.62, while its yield looked up to 8.44 per cent from 8.42 per cent.

Call money rate finished lower at 8.35 per cent, from yesterday's level of 8.50 per cent moving in a range of 8.5 and 8 per cent.