Rupee gains 25 paise on sustained $ selling

Ends at 54.58 against dollar on sustained selling of the US currency by exporters amid weak global cues

The rupee today gained a hefty 25 paise to close at 54.58 against the dollar, on sustained selling of the US currency by exporters amid weak global cues.

However, consolidation in local equities and continued capital outflows capped the domestic currency's gains to some extent, forex dealers said.

The rupee commenced a tad higher at 54.80 from its previous closing of 54.81 on Friday at the Interbank Foreign Exchange market. It moved in a range of 54.54-54.84.

Bonds remain up
Government securities (G-sec) remained up on sustained demand from banks and companies. The 8.33 per cent G-sec maturing in 2026 rose to Rs 102.75 from Rs 102.49 last Friday, while its yield moved down to 7.99 per cent from 8.02 per cent.

The 8.15 per cent G-sec maturing in 2022 shot up to Rs 101.53 from Rs 101.39, while its yield edged down to 7.91 per cent from 7.93 per cent.

The 8.20 per cent G-sec maturing in 2025 also climbed to Rs 101.71 from Rs 101.44, while its yield eased to 7.98 per cent from 8.01 per cent.

The 8.07 per cent G-sec maturing in 2017, the 7.83 per cent maturing in 2018 and the 8.12 per cent maturing in 2020 also quoted higher at Rs 101.07, Rs 99.85 and Rs 101.71, respectively.

Call rates end higher
Call money rates also finished higher here today due to good demand from borrowing banks. The overnight rate finished higher at 7.70 per cent from 6.95 per cent previously. It moved in a range of 8.60 per cent and 7.50 per cent.

The Reserve Bank of India under the liquidity adjustment facility purchased securities worth Rs 1,09,365 crore in 36 bids at the one-day repo auction at a fixed rate of 7.50 per cent.

It sold securities worth Rs 45 crore in two-bids at the one-day reverse repo auction at a fixed rate of 6.50 per cent.