The rupee gained for a ninth day after international investors increased holdings of local shares by the most in more than a month, to benefit from the nation’s relatively fast economic growth.
The Dollar Index, which tracks the greenback against the currencies of six major US trading partners, dropped 0.3 per cent. “The rupee is maintaining a bias for gradual near-term appreciation as stock inflows have improved,” said Sudarshan Bhatt, chief currency trader at Corporation Bank in Mumbai. “The weaker dollar is also supporting gains in the rupee.”
The rupee gained 0.2 per cent to 44.68 per dollar at close in Mumbai, according to data compiled by Bloomberg. The currency may rise to 44.50 this month, Bhatt predicted.
RUPEE GAINS
The government bonds declined due to fresh selling pressure from banks and companies. The 7.80 per cent government security maturing in 2021 dropped to Rs 96.78 from 96.93 yesterday, while its yield moved up to 8.28 per cent from 8.26 per cent. The 8.13 per cent government security maturing in 2022 declined to Rs 98.17 from 98.37, while its yield rose to 8.38 per cent from 8.35 per cent.
CALL RATE EDGES UP
The call rate finished higher to close at 7.40 per cent at the overnight call money market here on Tuesday owing to sustained buying support from borrowing banks. The call money rate finished higher at 7.40 per cent from yesterday's close of 7.35 per cent.
