The rupee rose to a one-week high on Tuesday as shares surged to a record high, but erased most of the gains to end flat as oil importers rushed to buy dollars once the local unit strengthened above 61 to the dollar. It is likely to be supported by strong foreign inflows that helped push up the BSE and NSE indexes to record highs on Tuesday.
However, traders expect more narrow ranges, given the lack of specific domestic triggers. Global factors will also be key this week, ahead of the US Federal Reserve's two-day meeting ending on Wednesday, continued political tensions in Ukraine and a weakening currency in China. The partially convertible rupee closed at 61.21 to the dollar, down two paise from Friday's close.
Bonds end mixed
Government securities (G-secs) ended mixed on bouts of buying and selling. The 8.83 per cent 10-year benchmark bond maturing in 2023 declined to Rs 100.1650 from Rs 100.2250 previously, while its yield edged up to 8.80 per cent from 8.79 per cent.
Call rates end higher
Call money rates recovered marginally on good demand from borrowing banks. The rates ended slightly higher at 7.20 per cent from Monday's level of seven. The range was between 8.15 per cent and seven per cent.
