Rupee volatility surges

Volatility in the rupee rose the most in more than two weeks as the Reserve bank of India's steps to tighten cash supply and arrest a slide in the currency were countered by concern the US will pare stimulus. The currency ended little changed from Wednesday at 59.11, after earlier rising to 58.77, the strongest level since June 19. Global funds have cut holdings of Indian debt by $8.8 billion since May 22, when the Fed first signaled it could curb asset purchases this year should economic risks subside.

Call rates end lower
Call money rates fell back at the overnight market here on Thursday due to lack of demand from borrowing banks. The overnight rate settled lower at 6.30 per cent from Wednesday's close of seven per cent. It moved in a wide range of 10.15 per cent and 6.30 per cent. RBI under the liquidity adjustment facility purchased securities worth Rs 28,047 crore in 40 bids at the one-day repo auction at a fixed rate of 7.25 per cent, while sold securities worth Rs 6,910 crore in 16 bids at a fixed rate of 6.25 per cent.