The rupee rose to a two-week high on signs the Federal Reserve will ease monetary policy to boost the US economy, helping spur dollar flows into emerging markets.
The rupee advanced 0.4 per cent to 55.26 per dollar, according to data compiled by Bloomberg. It touched 55.13 earlier, the strongest level since August 9.
The currency gained for a fourth day, the longest winning streak in seven weeks. Minutes of the Federal Open Market Committee’s last meeting, published yesterday, showed many members favoured more stimulus unless there’s a durable pickup in the world’s largest economy.
Bond rates end mixed
Government securities (G-sec) ended mixed amid negative bias on alternate bouts of buying and selling. The 8.33 per cent G-sec maturing in 2022 dropped to Rs 99.49 from Rs 99.56 yesterday, while its yield inched up to 8.39 per cent from 8.38 per cent. The 8.15 per cent G-sec maturing in 2022 fell to Rs 99.46 from Rs 99.51, while its yield moved up at 8.23 per cent from 8.22 per cent.
Call rates stable
Call rates remained steady at the overnight call money market here today as demand from borrowing banks matched supplies. The rate finished stable at 8.10 per cent.