Rupee flat as central bank holds rates

The rupee on Tuesday erased initial gains to closed flat at 54.85 against the US dollar amid RBI keeping key rates unchanged in the mid-quarter policy review.

While the rupee snapped a four-session downslide, it could not cement intra-day gains as RBI kept short-term lending (repo) and cash reserve ratio (CRR) unchanged, forex dealers said. At the Interbank Foreign Exchange market, the domestic unit commenced firm at 54.70, which was also the day’s high, from overnight close of 54.85.

Bonds 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 moved up to Rs 100.80 from Rs 100.79 yesterday, while its yield held steady at 8.23 per cent. The 8.20 per cent G-sec maturing in 2025 gained to Rs 99.83 from Rs 99.81, while its yield also ruled steady at 8.22 per cent. The 8.15 per cent G-sec maturing in 2022 declined to Rs 100.01 from Rs 100.06, while its yield inched up to 8.15 per cent from 8.14 per cent.

Call rates unchanged
Call money rates at the overnight money market finished steady as demand from borrowing bank matched supplies. The rate closed stable at 8.10 per cent. It moved in a range of 8.15 per cent and 7.95 per cent.