Rupee rises on global stimulus optimism

The rupee rose the most in almost two weeks on speculation that central banks in the world’s largest economies will take more steps to support growth, bolstering demand for higher-yielding assets.

The rupee advanced 1.2 per cent to 55.52 per dollar, the biggest jump since July 13, according to data compiled by Bloomberg.

The currency climbed after European Central Bank President Mario Draghi signalled officials were prepared to do whatever was needed to preserve the euro. Foreign investors added $10.2 billion to holdings of Indian shares this year, compared with outflows of $512 million in 2011, exchange data show. Asia’s third-largest economy expanded 5.3 per cent in the first three months of the year, faster than Brazil’s 0.75 per cent and Russia’s 4.9 per cent.

Bond rates end mixed
Government securities (G-sec) ended mixed on alternate bouts of buying and selling.

The 9.15 per cent G-sec maturing in 2024 surged to Rs 106.47 from Rs 106.44 yesterday, while its yield held steady at 8.30 per cent. The 8.19 per cent G-sec maturing in 2020 rose to Rs 100.24 from Rs 100.18, while its yield edged down at 8.15 per cent from 8.16 per cent.

Call rates recover
Rates recovered at the overnight call money market here on Thursday on fresh demand from borrowing banks. It moved in a range of 8.05 per cent and 7.95 per cent.