Rupee surrenders early gain; ends 3p lower at 60.14

The rupee surrendered all its early gains recorded in line with a surge in local equities to end the day 3 paise lower at 60.14 against the dollar due to late demand for the US currency from importers.

The fall in the rupee was capped on persistent capital inflows in record-making domestic stocks, a forex dealer said.

At the Interbank Foreign Exchange (forex) market, the local unit started strong at 59.82 a dollar from previous close of 60.11 and improved further to a high of 59.80 with domestic bourses recording smart gains.

But the emergence of dollar demand after mid-session pulled it down to a low of 60.16 before settling at 60.14, a fall of 3 paise from its previous close.

G-secs rise
Government securities (G-secs) rose on good buying support from banks and corporates, while the overnight call money market rate ended lower due to lack of demand from banks.

The 8.83 per cent 10-year benchmark bond maturing in 2023 climbed to Rs 98.6975 from Rs 98.27, while its yield fell to 9.03 per cent from 9.10 per cent.

The 7.28 per cent government security maturing in 2019 advanced to Rs 92.9450 from Rs 92.69, while its yield moved down to 9.02 per cent from 9.08 per cent. The 8.12 per cent government security maturing in 2020 also moved up to Rs 94.58 from Rs 94.23, while its yield eased to 9.22 per cent from 9.30 per cent.

The 8.28 per cent government security maturing in 2027, the 8.35 per cent government security maturing in 2022 and the 7.16 per cent government security maturing in 2023 were also quoted higher at Rs 91.8050, Rs 95.10 and Rs 86.84, respectively. The overnight call money rate finished lower at 8.15 per cent from 9.10 per cent as on Monday and it moved in a range of 8.50 per cent and 8.00 per cent. The Reserve Bank of India, under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 172.98 billion in 42-bids at the 1-day repo auction at a fixed rate of 8.00 per cent today, while it sold securities worth Rs 0.20 billion from 1-bid at the 2-days reverse repo auction at a fixed rate of 7.00 per cent as on Monday evening.