Rupee rose to the highest level in almost three weeks after Germany backed the European Central Bank’s bond-buying plan, which may ease the debt crisis and boost demand for emerging-market assets.
The rupee advanced 0.8 per cent to 55.07 per dollar, the biggest gain since July 26.
Bonds firm up on sustained demand
Government securities (G-sec) firmed up on sustained demand from banks and companies. The 8.33 per cent G-sec maturing in 2026 climbed to Rs 100.02 from Rs 99.52 yesterday, while its yield dropped 8.33 per cent from 8.39 per cent.
Call rate ends higher
Call rates moved up at the overnight call money market here on Tuesday on good demand from borrowing banks. It finished higher at 8.05 per cent.
