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Extending its rising streak for the third straight day, the rupee on Tuesday strengthened by 12 paise to 61.83 against the dollar in early trade at the Interbank Foreign Exchange market on increased selling of the dollar by exporters. The rupee had gained 9 paise to close at a one-week high of 61.95 against the dollar on Monday.
Bonds down
The government securities dropped further on sustained selling pressure from banks and corporates, while the call money rates ended lower at the overnight call money market here on Tuesday due to lack of demand from borrowing banks. The 8.83 per cent government security maturing in 2023 dropped to Rs 99.75 from Rs 100.07 previously, while its yield moved-up to 8.87 per cent from 8.82 per cent.
Call rates
The overnight call money rate ended lower at 8.70 per cent from 8.75 per cent on Monday. It moved in a range of 8.85 per cent and 8.70 per cent.
The Reserve Bank of India (RBI) under the Liquidity Adjustment Facility (LAF) purchased securities worth Rs 409.27 billion in 64 bids at the two-days repo auction at a fixed rate of 7.75 per cent, while sold securities worth Rs 0.22 billion from 2-bids at the two-days reverse repo auction at a fixed rate of 6.75 per cent in the evening auction.
