The rupee gained the most in a week on speculation exporters converted foreign earnings and after global funds pumped money into local stocks.
The currency strengthened a second day after investors abroad bought $1.1 billion more Indian shares than they sold this month through January 7, adding to net purchases of $24.5 billion in 2012, exchange data show. The rupee advanced 0.5 per cent to 54.76 a dollar here, according to data compiled by Bloomberg.
Bonds rise on fresh buying
Government securities (G-sec) rose on fresh demand from banks and companies.
The 8.15 per cent G-sec maturing in 2022 moved up to Rs101.65 from Rs101.59 yesterday, while its yield inched down to 7.90 per cent from 7.91 per cent. The 8.33 per cent G-sec maturing in 2026 firmed up to Rs102.96 from Rs102.91, while its yield held steady at 7.97 per cent.
Call rates end lower
Call money rates ended lower at the overnight call money market here on Wednesday due to lack of demand from borrowing banks amidst ample liquidity in banking system. The rate finished lower at 7.95 per cent from Tuesday’s closing of 8.10 per cent. It moved in a range of 8.15 per cent and 7.90 per cent.
