The rupee on Wednesday recovered from three-month lows to close marginally higher by five paise at 51.42/43 against the US currency on fresh dollar selling by banks despite weak equity markets.
The rupee resumed lower at 51.51/52 per dollar at the Interbank Foreign Exchange (Forex) market, against the last close of 51.47/48. It dropped further to a three-month low of 51.7 on renewed dollar demand from importers, amidst weakness in local equity markets.
Later, it recovered to 51.38 per dollar before settling at 51.42/43 per dollar, showing a gain of five paise.
Fresh selling of dollars by banks and exporters in view of weak dollar in markets abroad mainly boosted the rupee's value against the dollar, a dealer said.
Bonds firm further, call rate recovers
Government securities (G-Sec) firmed up further on sustained buying support from banks and companies .
The 9.15 per cent (G-Sec) maturing in 2024 improved further to Rs 104.20 from Rs 103.84 yesterday, while its yield moved down to 8.60 per cent from 8.64 per cent. The 8.8 per cent (G-Sec) maturing in 2021 shot up to Rs 101.5650 from Rs 101.27, while its yield eased to 8.57 per cent from 8.59 per cent.
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Meanwhile, call rates recovered at the overnight money market.
The overnight call money rate finished higher at 8.85 per cent from yesterday's close of 8.75 per cent. It moved in a range of 9.00 per cent and 8.60 per cent.