Tracking stock market movements, the rupee on Monday surged to 53.66 a dollar on robust capital inflows but pared some gains to close at 54.01 — still 29 paise higher — amid Reserve Bank of India infusing Rs 17,000 crore into system by way of a cut in Cash Reserve Ratio. At the Interbank Foreign Exchange (Forex) market, the rupee resumed sharply higher at 53.80 a dollar compared to last Friday's close of 54.30.
Bonds remain lower
Government bonds dropped on continued selling pressure from banks and companies. The 8.33 per cent government security maturing in 2026 dipped to Rs 100.07 from 100.19 last Friday, while its yield moved up to 8.32 per cent from 8.30 per cent. The 8.15 per cent government security maturing in 2022 fell to Rs 99.78 from 99.80, while its yield held steady at 8.18 per cent.
Call rates finish higher
Call rates recovered at the money market here on Monday on fresh demand from borrowing banks. The call money rate finished higher at eight per cent from 7.95 per cent last Friday, It moved in a range of 8.10 per cent and 7.80 per cent. The Reserve Bank of India under the Liquidity Adjustment Facility purchased securities worth Rs 53,655 crore from 17 bids at the one-day repo auction, at a fixed rate of eight per cent.