 "Rupee at 2-week high on dollar selling, FII inflows")
IIn a tale of contrasting fortunes, the rupee today appreciated by 23 paise to end at nearly two-week high of 54.19 on dollar selling and persistent capital inflows even as stock markets closed lower.
Earlier in the day, the rupee commenced higher at 54.30 a dollar from the last closing of 54.41. It then moved erratically on alternate bouts of buying and selling in a range of 54.17 and 54.40 as higher-than-expected industrial production data for January was partially neutralised by rise in retail inflation for February.
Bonds react downward
Government bonds reacted downwards on fresh selling pressure from banks and companies. The 8.15 per cent government security maturing in 2022 dropped to Rs 101.68 from Rs 101.99 yesterday, while its yield rose to 7.89 per cent from 7.84 per cent. The 8.33 per cent government security maturing in 2026 dipped to Rs 102.84 from Rs 103.16, while its yield firmed up to 7.98 per cent from 7.94 per cent.
Call rates end lower
Overnight call money rates ended lower here today in the absence of demand from borrowing banks amid ample liquidity. The rate finished slightly lower at 7.80 per cent from 7.85 per cent previously. It moved in a range of 7.85 per cent and 7.70 per cent.
Earlier in the day, the rupee commenced higher at 54.30 a dollar from the last closing of 54.41. It then moved erratically on alternate bouts of buying and selling in a range of 54.17 and 54.40 as higher-than-expected industrial production data for January was partially neutralised by rise in retail inflation for February.
Bonds react downward
Government bonds reacted downwards on fresh selling pressure from banks and companies. The 8.15 per cent government security maturing in 2022 dropped to Rs 101.68 from Rs 101.99 yesterday, while its yield rose to 7.89 per cent from 7.84 per cent. The 8.33 per cent government security maturing in 2026 dipped to Rs 102.84 from Rs 103.16, while its yield firmed up to 7.98 per cent from 7.94 per cent.
Call rates end lower
Overnight call money rates ended lower here today in the absence of demand from borrowing banks amid ample liquidity. The rate finished slightly lower at 7.80 per cent from 7.85 per cent previously. It moved in a range of 7.85 per cent and 7.70 per cent.