Rupee recovers by 14 paise on reform hopes

Snaps two-day losses to end higher at 53.67 against dollar

Snapping a two-day string of losses, the rupee today recovered to close 14 paise higher at 53.67 against the dollar on Finance Minister P Chidambaram underlining the government’s commitment to reforms and confidence about passage of key bills in the coming Budget session.

At the Interbank Foreign Exchange market, the local unit commenced strong at 53.68 a dollar from the previous close of 53.81 and touched a high of 53.58, on the back of initial rise in domestic stocks.

However, a fall in equities after mid-session pulled the rupee down to a low of 53.90. It later recovered in line with stocks to settle at 53.67.

Bonds decline
Government bonds declined on selling pressure from banks and companies.

The 8.33 per cent government security maturing in 2026 dropped to Rs 103.02 from Rs 103.22 previously, while its yield edged up at 7.96 per cent from 7.94 per cent.

Call rates finish lower
Overnight money rates finished lower at the call money market here today on lack of demand from borrowing banks.

The overnight call money rate finished lower at 8.00 per cent from 8.05 per cent yesterday. It moved in a range of 8.10 per cent and 7.85 per cent.