The rupee rose to a near two-week high on Monday as manufacturing activity returned to growth in November, but trimmed gains after the Reserve bank of India (RBI) said state-run oil companies were sourcing all of their dollar needs in markets.
The partially convertible rupee closed at 62.31/32 a dollar compared with 62.44/45 on Friday. It rose to 61.96 during the session, its highest level since November 1
Bonds end mixed
Government securities (G-sec) ended mixed on bouts of buying and selling. The 8.28 per cent G-sec maturing in 2027 climbed to Rs 93.62 from Rs 93.55 previously, while its yield edged-down to 9.10 per cent from 9.11 per cent.
Call rates fall
The overnight rates fell on Monday amid comfortable liquidity. According to traders, the easy liquidity is due to banks converting funds raised from RBI's special dollar swap window into rupees. The weighted average rate (WAR) for call money on Monday stood at 7.6 per cent, compared with 7.63 per cent on Friday.
Traders see rates falling further in the next few days. However, beyond that, rates may again start hardening due to the third instalment of corporate advance tax deadline, which is in mid-December. During that time, there would be a lot of fund outflows from the system.
