Rupee gains 24p on capital inflows

The rupee on Thursday appreciated 25 paise to close at nearly a week's high of 60.95 against the dollar, following selling of the US currency by exporters and some banks, amid sustained heavy capital inflows.

The local currency that logged its best daily gain since March 6 seemed unperturbed by expectations that the US Fed will again taper its stimulus by another $10 billion and move away from technical guidance on when it will raise rates, said traders.

Government securities (G-sec) rose on good buying support from banks and companies, while the overnight call money market rates ended lower due to lack of demand from borrowing banks.

The 8.83 per cent 10-year benchmark bond maturing in 2023 shot-up to ~100.3175 from ~100.1650 previously, while its yield moved-down to 8.78 per cent from 8.80 per cent.

The 8.12 per cent government security maturing in 2020 climbed to Rs 95.21 from Rs 95.13, while its yield edged-down to 9.08 per cent from 9.10 per cent.

The 7.28 per cent government security maturing in 2019 also gained to Rs 93.34 from Rs 93.26, while yield eased to 8.90 per cent from 8.92 per cent. The 8.24 per cent government security maturing in 2027, the 7.16 per cent government security maturing in 2023, and the 8.32 per cent government security maturing in 2032 were also quoted-up at Rs 93.10, Rs 87.8650 and Rs 92.82,0 respectively.