Rupee posts biggest gain since May

The rupee on Wednesday posted its biggest single-day gain since mid-May and rose to its highest level in more than two weeks on the back of heavy dollar sales by custodian banks along with some corporate dollar inflows. The partially convertible rupee closed at 59.69 to a dollar compared with 60.08 on Tuesday.

The unit rose to 59.62, its strongest since June 13, while the day's low was 60.07. Government bond (G-sec) yields surged further on sustained buying support from banks and corporates. The 8.83 per cent 10-year benchmark bond maturing in 2023 shot-up to Rs 101.08 from Rs 100.5675, while its yield held declined at 8.66 per cent from 8.74 per cent.

The overnight call money rates finished lower at seven per cent from 8.70 per cent on Tuesday. It moved in a range of 8.60 per cent and 6.90 per cent.

It moved in a wide range of 8.60 per cent and 6.90 per cent.