Breaking the weakening spree the rupee strengthened on Wednesday due to dollar sale by companies and custodian banks. The appreciation was despite month-end dollar demand from importers.
It ended at 62.44 compared with Tuesday's close of 62.77 per dollar. The rupee had touched a low of 62.89 and a high of 62.33 during intra-day trades.
It had been weakening since Friday, after the Reserve Bank of India (RBI) shocked the market by raising the repo rate by 25 basis points to 7.50 per cent.
Tracking the appreciation in the rupee government bond yields fell. The yield on the 10-year benchmark 7.16 per cent 2023 ended at 8.79 per cent, compared with the previous close of 8.84 per cent.
However, bond market sentiments continue to be bearish in a scenario of are two auction of government bonds being held in the same week. On Monday the government bond auction for a notified amount of Rs 15,000 crore devolved partially on primary dealers to the tune of Rs 4,030 crore.
Call rates finish lower
Call money rates finished lower at the overnight market here on Wednesday due to lack of demand from borrowing banks amidst ample liquidity in the system.
It ended at 62.44 compared with Tuesday's close of 62.77 per dollar. The rupee had touched a low of 62.89 and a high of 62.33 during intra-day trades.
It had been weakening since Friday, after the Reserve Bank of India (RBI) shocked the market by raising the repo rate by 25 basis points to 7.50 per cent.
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Bond yields fall
Tracking the appreciation in the rupee government bond yields fell. The yield on the 10-year benchmark 7.16 per cent 2023 ended at 8.79 per cent, compared with the previous close of 8.84 per cent.
However, bond market sentiments continue to be bearish in a scenario of are two auction of government bonds being held in the same week. On Monday the government bond auction for a notified amount of Rs 15,000 crore devolved partially on primary dealers to the tune of Rs 4,030 crore.
Call rates finish lower
Call money rates finished lower at the overnight market here on Wednesday due to lack of demand from borrowing banks amidst ample liquidity in the system.