Rupee rises 12 paise to three-week high

Rising for the second day, the rupee on Wednesday strenghtened 12 paise to end at a three-week high of 62.1 against the dollar on capital inflows linked to rise in stocks and a weak American currency ahead of US retail sales.

Government securities (G-sec) remained bearish on sustained selling pressure from banks and corporates and the overnight call money rates also ended lower due to lack of demand from borrowing banks amidst ample liquidity in the banking system. The 8.83 per cent government security maturing in 2023 dipped to Rs 100.1025 from Rs 100.5550 previously, while its yield climbed to 8.81 per cent from 8.74 per cent.

The overnight call money rate ended lower at 9.00 per cent from 9.15 per cent yesterday, it moved in a range of 9.15 per cent and 8.65 per cent.

The 8.12 per cent government security maturing in 2020 dropped to Rs 94.90 from Rs 95.2450, while its yield moved-up to 9.14 per cent from 9.07 per cent.

The 8.28 per cent government security maturing in 2027 also declined to Rs 92.34 from Rs 93.15, while its yield advanced to 9.28 per cent from 9.17 per cent.

The 7.28 per cent government security maturing in 2019, the 8.24 per cent government security maturing in 2027 and the 7.16 per cent government security maturing in 2023, were also quoted down at Rs 92.9750, Rs 92.25 and Rs 87.45,respectively.