The rupee rebounded from a seven-week low on speculation that exporters repatriated income from abroad to take advantage of a more favourable exchange rate. Bonds gained.
The rupee rose 0.3 per cent to 54.44 a dollar here, data compiled by Bloomberg show. It earlier touched 54.78, the weakest level since September 14. One-month implied volatility, a measure of exchange-rate swings used to price options, rose 2.5 basis points, or 0.025 percentage point, to 10.33 per cent.
Bonds rise on good buying
Government securities (G-sec) rose on good buying support from banks and companies.
The 8.33 per cent G-sec maturing in 2026 surged to Rs 100.37 from Rs 100.21 yesterday, while its yield edged down to 8.28 per cent from 8.30 per cent. The 8.15 per cent G-sec maturing in 2022 climbed to Rs 99.77 from Rs 99.69, while its yield inched down at 8.18 per cent from 8.19 per cent.
Call rates end higher
Call money rates ended higher at the overnight market here on Tuesday on good demand from borrowing banks
The rate closed higher at 8.15 per cent from 8.05 per cent yesterday.
It moved in a range of 8.15 per cent and 7.75 per cent.