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The rupee dipped slightly on Thursday as dollar buying by state-run banks and the rise in global oil prices kept the local currency under pressure. Dealers say the pair will continue to trade in a narrow range in the immediate future.
The partially convertible rupee ended at 60.18 to a dollar, from its Wednesday closing of 60.14. "Volumes have been low and sentiment, dull. The dollar rupee pair will remain in a narrow range for the rest of this week," said a dealer at a state-run bank.
Bonds ends mixed, call rate finishes higher
The government bond (G-sec) ended mixed on alternate bouts of buying and selling. The 8.83 per cent 10-year benchmark bond maturing in 2023 fell to Rs 100.5650 from Rs 100.65, while its yield moved up by 8.74 per cent from 8.72 per cent previously.
The overnight call money rate recovered on good demand from borrowing banks amid tight liquidity in the banking system. The rates ended slightly higher at 7.05 per cent from yesterday's level of 7.01 per cent. It moved in a wide range of 8.35 per cent and 6.90 per cent.
Meanwhile, the Reserve Bank of India (RBI), under the liquidity adjustment facility (LAF), purchased securities worth Rs 20,837 crore in 54-bids at the 1-day repo auction at a fixed rate of 8.00 per cent on Thursday morning, while it sold securities worth Rs 6,591 crore from 18-bids at the 1-day reverse repo auction at a fixed rate of 7 per cent on Wednesday evening.
