Rupee rises to over 6-mth high on FII inflows

Tracking strong performance in Indian stocks, the rupee on Monday appreciated 14 paise against the dollar to end at an over six-and-a-half month closing peak of 60.79, buoyed by sustained capital inflows.

Continued dollar selling by exporters also aided the rupee's upward journey for the second session in a row even as the dollar index was trading up 0.14 per cent against a basket of six major global currencies.

Foreign funds pumped in over Rs 1,465 crore in Indian equities on Monday, helping benchmark indices hit fresh highs. At the interbank foreign exchange (Forex) market, the rupee resumed slightly lower at 60.92 a dollar from last weekend's close of 60.89.

Government securities (G-sec) surged on sustained buying support from banks and companies and the overnight call money market rates also ended higher on fresh demand from borrowing banks.

The 8.83 per cent 10-year benchmark bond maturing in 2023 climbed to Rs 100.2750 from Rs 100.20 previously, while its yield edged down 8.78 per cent from 8.80 per cent.

The 8.12 per cent government security maturing in 2020 gained to Rs 95.29 from Rs 95.19, while its yield eased to 9.07 per cent from 9.09 per cent.

The overnight call money rate finished higher at 8.95 per cent from 8.50 per cent previously and it moved in a range of 9.05 per cent and 8.60 per cent.

The Reserve Bank of India (RBI) under the Liquidity Adjustment Facility (LAF) purchased securities worth Rs 393.84 billion in 59-bids at the 1-day repo auction at a fixed rate of 8.00 per cent today morning, while sold securities worth Rs 29.63 billion from 14-bids at the 3-days reverse repo auction at a fixed rate of 7.00 per cent last Friday.