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The rupee retreated after hitting its highest level in eight months on Wednesday as importers rushed in to buy dollars, while traders also speculated about possible central bank intervention.
The Reserve Bank of India is suspected to have been buying dollars in recent sessions to shore up its foreign exchange reserves, which now stand at $298.64 billion, their highest since December 2011.
The rupee has remained supported by a powerful rally in the Sensex, which touched a record high for an eighth consecutive session on Wednesday, on the back of strong foreign inflows. The partially convertible rupee closed at 59.90/91 a dollar, little changed compared to its Friday's close of 59.91/92. The rupee hit 59.59 to the dollar during intraday trade, its strongest level since July 30.
Bonds slip
The government securities (G-secs) slipped on selling from banks and companies. The 8.83 per cent G-sec maturing in 2023 declined to Rs 99.13 from Rs 100.15 previously, while its yield climbed to 8.96 per cent from 8.80 per cent.
Call rates end higher
Call money rates ended higher on good demand from borrowing banks. The rates finished higher at 8.15 per cent from Friday's 7.50 per cent and it moved in a range of 9.20 per cent and eight per cent.
