Rupee snaps 2-day fall

The rupee gained on Tuesday, snapping a two-session falling streak as gains in the domestic share market prompted good dollar selling by custodian banks, but month-end demand from importers limited a further rise.

The partially convertible rupee closed at 60.12 to a dollar compared to 60.20/21 on Monday. The rupee moved in a range of 60.0775 to 60.1725 during the session.

Traders expect the rupee to remain in a broad 59.50 to 60.50 per dollar range until the Budget on July 10.

Month-end demand for dollars from importers, particularly oil firms, is expected to keep a downward bias on the rupee over the week but foreign fund flows will be crucial for direction.

Government bonds (G-secs) recovered smartly on fresh buying support from banks and companies.

The 8.83 per cent 10-year benchmark bond maturing in 2023 shot up to Rs 100.7025 from Rs 100.35, while its yield slipped to 8.72 per cent from 8.77 previously.

The overnight call money rate remained higher due to sustained demand from borrowing banks.

They ended slightly higher at 8.30 per cent from 8.25 per cent on Monday. It moved in wide range of 9.00 per cent and 7.90 per cent.