Rupee rises 14 paise

The rupee on Thursday appreciated by 14 paise to close at over one-week high of 60.11 against the dollar following bullish local equities and sustained capital inflows, extending gains for the second straight day.

Dollar selling by exporters and a weak US currency overseas too aided the rupee upmove.

At the Interbank Foreign Exchange (Forex) market, the domestic currency commenced higher at 60.15 a dollar from last close of 60.25, but fell back to a low of 60.1975.

Later, it bounced back and touched a high of 60.05 before concluding at 60.09, up by 14 paise.

Government bonds (G-secs) surged further on persistent buying support from banks and corporates, while the call rate ended stable at the overnight call money market on alternate bouts of buying and selling.

The 8.83 per cent 10-year benchmark bond maturing in 2023 shot up to Rs 101.0450 from Rs 100.86, while its yield eased to 8.66 per cent from 8.69 per cent.

The overnight call money rates ended stable at 9.00 per cent. It moved in a range of 9.05 per cent and 8.25 per cent.

FIIs infused Rs 412.03 crore on Thursday as per provisional data with stock exchanges.

The dollar index was down 0.05 per cent against a basket of six major global currencies.

Pramit Brahmbhatt, Veracity Group CEO, said: "Rupee continued to trade strong and appreciated by almost a quarter per cent. Local equities continued their bull run, which helped rupee trade strong against the dollar.

"However, importer month-end dollar demand restricted the rupee appreciation. The trading range for the spot rupee is expected to be within 59.70 to 60.60."