The rupee advanced to a three- week high after foreign investors added to their holdings of local stocks. The easing of concern about Europe’s debt crisis also aided the rupee’s gain. European Union officials agreed to pay the fifth instalment of a ¤110-billion bailout agreed for Greece last year, Luxembourg Prime Minister Jean-Claude Juncker said after meeting with Greek Prime Minister George Papandreou on June 3.
The rupee strengthened 0.1 per cent to 44.765 per dollar at close in Mumbai, according to data compiled by Bloomberg. It reached 44.69 earlier, the strongest level since May 11.
BONDS FIRM UP
Government bonds rose due to renewed buying support from banks and companies. The 8.13 per cent government security maturing in 2022 hardened to Rs 98.37 from 98.07, while its yield declined to 8.35 per cent from 8.40 per cent.
The 7.80 per cent government security maturing in 2021 moved up to Rs 96.93 from Rs 96.8850, while its yield softened to 8.26 per cent from 8.27 per cent. The 8.08 per cent government security maturing in 2022 rose to Rs 97.96 from Rs 97.90, while its yield looked down to 8.36 per cent from 8.37 per cent.
CALL RATE RISES
THE call rate moved up to 7.35 per cent due to sustained demand from borrowing banks on the call money market here today. The call money rate finished higher at 7.35 per cent from last Friday's close of 7.00 per cent. It moved in the 7.50 per cent to 7.35 per cent range.
