Rupee rises to nearly month's high of 61.84

The rupee on Monday rose nine paise to end at nearly a month-high of 61.84 against the dollar, after the government said in the interim Budget that the fiscal deficit this financial year would be capped below target and also cut market borrowing for 2014-15.

Sustained dollar selling by exporters and positive cues from stocks also aided the rupee sentiment, traders said.     At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced slightly lower at 61.96 a dollar from previous close of 61.93. It then touched a low of 62.09 on initial hesitancy in local equities.

However, the rupee later recovered and touched a high of 61.83, before concluding at 61.84 — a rise of nine paise or 0.15 per cent. This is the best closing since 61.81 on January 22, 2014.

Bonds end mixed, call rates extend fall
Government bonds’ prices ended mixed due to alternate bouts of buying and selling amid nervousness over liquidity as well as concerns over next fiscal's government borrowing.The 8.83 per cent 10-year benchmark bond maturing in 2023 firmed up further to Rs 100.14 from Rs 100.1150 last Friday, while its yield softened to 8.80 per cent from 8.81 per cent.

The overnight call money drifted to 7.05 percent from last weekend level of 8.85 per cent after trading between a high of 8.95 per cent and a low of 7.00 per cent earlier.