The rupee rose to the highest level in more than a week on optimism European leaders meeting this month will agree to ease bailout conditions for Greece and help resolve their region’s debt crisis. The rupee advanced 0.2 per cent to 55.49 per dollar, according to data compiled by Bloomberg. It touched 55.36 earlier, the strongest level since August 13. One-month implied volatility, a measure of exchange-rate swings used to price options, rose five basis points, or 0.05 percentage points, to 10.20 per cent.
Bonds recover on good demand
Government securities (G-sec) recovered on good buying support from banks and companies. The 8.33 per cent G-sec maturing in 2026 climbed to Rs 99.56 from Rs 99.41 yesterday, while its yield edged down 8.38 per cent from 8.40 per cent.
The 8.15 per cent G-sec maturing in 2022 surged to Rs 99.51 from Rs 99.35, while its yield eased to 8.22 per cent from 8.25 per cent. The 8.19 per cent G-sec maturing in 2020 also rose to Rs 99.44 from Rs 99.30, while its yield moved down to 8.29 per cent from 8.32 per cent.
Call rates end higher
Call rates ended higher at the overnight call money market here on Wednesday on fresh demand from borrowing banks. The rate finished higher at 8.10 per cent. It moved in a range of 8.10 per cent and 7.75 per cent.