The rupee strengthened on Wednesday as oil-related dollar demand waned at the start of the month, while custodian banks were spotted selling dollars in a session marked by caution ahead of the US Federal Reserve meeting.
The partially convertible rupee closed at 55.47/48 per dollar, stronger than its close of 55.6450/6550 on Tuesday.
Bonds recover on good demand
Government securities (G-sec) recovered on good buying support from banks and companies. The 8.15 per cent G-sec maturing in 2022 climbed to Rs 99.5 from Rs 99.4 yesterday, while its yield moved down 8.23 per cent from 8.25 per cent. The 8.19 per cent G-sec maturing in 2020 surged to Rs 99.4 from 99.3, while its yield declined to 8.29 per cent from 8.32 per cent. The 9.15 per cent G-sec maturing in 2024 also gained to Rs 105.7 from 105.6, while its yield edged down to 8.40 per cent from 8.41 per cent. The 8.33 per cent G-sec maturing in 2026, the 7.83 per cent maturing in 2018 and the 8.79 per cent maturing in 2021 also quoted higher at Rs 99.6, Rs 98.2 and Rs 102.8, respectively.
Call rates ease
Rates eased at the overnight call money market here on Wednesday due to lack of demand from borrowing banks amidst ample liquidity in the banking system. The rate finished lower, at eight per cent.
