Rupee gets GAAR relief, gains 56 paise

Recouping from sharp early losses, the rupee gained an impressive 56 paise at 52.91/92 against the dollar, to snap a four-day losing string as hopes of strong fund flows got a boost from Finance Minister Pranab Mukherjee’s deferring the controversial GAAR by one year. Treasury managers in banks said steps announced by the Reserve Bank regarding FCNR and export credit also lifted the rupee sentiment. At the interbank foreign exchange market, the domestic unit opened weak at 53.63/64 and logged an intra-day low of 53.76 on early sharp fall in local equities due to negative global advices.

Bonds remain mixed
Government securities (G-sec) remained mixed on alternate bouts of buying and selling. The 8.19 per cent G-sec maturing in 2020 improved further to Rs 98.0125 from last weekend’s level of Rs 98.0075, while its yield softened to 8.54 per cent from 8.55 per cent. The 8.97 per cent G-sec maturing in 2030 firmed up to Rs 100.55 from Rs 100.48, while its yield looked down to 8.91 per cent from 8.92 per cent. The 7.99 per cent G-sec maturing in 2017 and the 8.83 per cent G-sec maturing in 2041 also quoted higher at Rs 98.35 and Rs 98.33, respectively.

Call rate recovers
The call rate recovered on the overnight money market here on Monday due to fresh demand from borrowing banks, following limited liquidity in the banking system. The overnight call money rate finished higher at 8.4 per cent from last Friday’s 7.8 per cent. It moved in a range of 8.2 and 8.5 per cent.