The rupee gained on Wednesday, recovering from earlier losses after a government panel recommended an immediate increase in state-subsidised diesel prices, reducing some concerns about the country's finances. The government should raise diesel prices by about 9.5 per cent or Rs 5 ($0.08) a litre, a government panel said on Wednesday, along with other measures aimed at cutting the government's huge oil subsidy bill. The rupee also got a boost after Reserve Bank of India governor Raghuram Rajan said on Wednesday the central bank risks excessive tightening, given the lag in monetary policy.
The partially convertible rupee closed at 61.23/24 a dollar compared to 61.31/32 on Tuesday. It moved in a range of 61.23 to 61.60 during the session.
Bonds end mixed
Government securities (G-secs) ended mixed on bouts of buying and selling. The 7.16 per cent G-sec maturing in 2023 dropped to Rs 90.90 from Rs 91.13 previously, while its yield moved up to 8.57 per cent from 8.54 per cent.
Call rates finish higher
Call money rates finished higher at the overnight market on good demand from borrowing banks. The rates finished higher at 8.70 per cent. It moved in a range of 8.80 and 8.50 per cent.
The partially convertible rupee closed at 61.23/24 a dollar compared to 61.31/32 on Tuesday. It moved in a range of 61.23 to 61.60 during the session.
Bonds end mixed
Government securities (G-secs) ended mixed on bouts of buying and selling. The 7.16 per cent G-sec maturing in 2023 dropped to Rs 90.90 from Rs 91.13 previously, while its yield moved up to 8.57 per cent from 8.54 per cent.
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Call rates finish higher
Call money rates finished higher at the overnight market on good demand from borrowing banks. The rates finished higher at 8.70 per cent. It moved in a range of 8.80 and 8.50 per cent.