Rupee up 10 paise against dollar

The rupee on Tuesday gained 13 paise to settle at a week's high of 61.96 against the dollar, amid positive stock markets and signs of continued capital inflows. The rupee was aided by sustained dollar selling by exporters and weak overseas demand for dollar ahead of the release of US consumer confidence and home price data later in the day.

The dollar index was down by 0.12 per cent against the basket of six major global currencies. At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced higher at 61.95 a dollar from previous close of 62.07. It later moved in a tight range of 61.88 and 62.04 before settling at 61.96, up by of 13 paise. In three straight days, the rupee has risen by 29 paise.

Government bonds showed a mixed trend owing to alternate bouts of buying and selling. Meanwhile, call rates ended lower on the overnight call money market due to lack of demand from borrowing banks on the back of comfortable liquidity in the banking system. The 8.83 per cent 10-year benchmark bond maturing in 2023 regained to Rs 99.69 from Rs 99.6225, while its yield moved down to 8.87 per cent from 8.89 per cent on Monday.

The 7.28 per cent government security maturing in 2019 rose to Rs 92.89 from Rs 92.83 previously, while yield eased to 9.00 per cent from 9.01 per cent.

The overnight call money rate edged down to 7.30 per cent from 7.70 per cent previously after moving in a small range earlier.