Rupee rises on cheer in Europe

The rupee strengthened on speculation that Europe’s policy makers would be able to contain the region’s debt crisis, boosting demand for emerging-market assets.

The rupee advanced 0.3 per cent to 49.1525 per dollar in Mumbai, according to data compiled by Bloomberg.

Foreign investors bought $81 million more Indian shares than they sold on October 17 following net purchases of $345 million the previous week, exchange data show. Offshore forwards indicate the rupee would trade at 49.86 to the dollar in three months, compared with expectations for a rate of 50.03 yesterday.

BONDS END MIXED
Government bonds closed mixed on alternate bouts of buying and selling. The 7.80 per cent government security maturing in 2021, dropped to Rs 93.81 from Rs 93.98 yesterday, while its yield moved up to 8.77 per cent from 8.75 per cent.

CALL RATE STABLE
The call rate remained steady on the overnight call money market on Wednesday on alternate demand and supply. The overnight call money moved in a range of 8.30 per cent and 7.85 per cent before concluding stable at its yesterday's closing level of 8.30 per cent.