The rupee on Monday gained 23 paise to close at 49.19/20 against the US dollar on sustained selling of the American currency by exporters amid weak overseas cues. Forex dealers said continued foreign fund inflows into equities amid mild recovery in local stocks also aided the rupee sentiment.
The local unit moved between 49.12 and 49.54 at the Interbank Foreign Exchange (Forex) market, before settling higher by 23 paise at 49.19/20 against the dollar.
Bonds decline further
Bonds fell on concern that demand for the notes could wane as the government’s debt sales drain cash from the banking system.
Banks have borrowed an average Rs 1.3 lakh crore ($26 billion) a day from the central bank to meet shortages in the past month, according to data from the Reserve Bank of India.
Call rate stable
Call rate ended stable here on alternate bouts of demand and supply. The overnight call money rate settled at its last Friday's closing level of 8.80 per cent. It moved in a range of 8.90 per cent and 8.65 per cent.