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Rupee gains as stocks rebound

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Agencies Mumbai
Last Updated : Feb 05 2014 | 12:30 AM IST
The rupee recovered from early losses on Tuesday to end the session with marginal gains, as the government's auction of mobile airwaves attracted strong demand, including from bidders such as Vodafone, offsetting concerns about global risk aversion. The government received $7 billion worth of total bids on Monday, the first day of the auction and looked set to top its minimum target of raising $1.8 billion initially. Foreign firms such as Vodafone and Telenor would have to convert their dollars to rupees if they win licences, with the first tranche needing to be paid within 10 days of allocation.

The partially convertible rupee closed at 62.53/54 a dollar, compared with Monday's 62.57/58, after initially falling to a session low of 62.81.

Bonds gains
Government securities (G-secs) prices gained further on sustained buying support from banks and companies. The 8.83 per cent 10-year G-sec maturing in 2023 advanced to Rs 100.96 from Rs 100.60 previously, while its yield slipped to 8.68 per cent from 8.73 per cent.

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Call rates recover
Call money rates recovered marginally on good demand from borrowing banks. The rates ended slightly higher at 7.20 per cent from Monday's level of seven. It moved in a range of 8.15 per cent and seven per cent.

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First Published: Feb 05 2014 | 12:30 AM IST

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