Rupee retreats after near 3-week high

The rupee retreated after hitting a near three-week high on Thursday, as good dollar demand from state-run banks on behalf of both importers and the Reserve Bank of India offset inflows seen with foreign banks.

The partially convertible rupee closed at 59.74 to a dollar, compared with 59.69 on Wednesday. It rose to 59.52 in early trade, its strongest since June 13.

Government bonds (G-sec) ended mixed on alternate bouts of buying and selling. The 8.83 per cent 10-year benchmark bond maturing in 2023 edged down to Rs 101.0750 from Rs 101.08, while its yield held steady at 8.66 per cent.

Meanwhile, the overnight call money rate edged up due to good demand from borrowing banks. The rates edged higher at 7.01 per cent from 7.00 per cent on Wednesday. It moved in a wide range of 8.10 per cent and 6.95 per cent.