The rupee strengthened for the first time in nine days on speculation that European leaders would contain the region’s debt crisis and spur demand for emerging- market assets.
The rupee rose 0.2 per cent to 47.555 per dollar at the close in Mumbai, according to data compiled by Bloomberg, rebounding from the day’s low of 47.91. It dropped to 48.01 yesterday, the lowest level since September 29, 2009, before paring losses on speculation the central bank sold dollars.
BONDS END MIXED
Government bonds on Thursday closed mixed on alternate bouts of buying and selling.
The 8.13 per cent government security maturing in 2022 moved up to Rs 97.8525 from Rs 97.79, while its yield eased to 8.43 per cent from 8.44 per cent. The 8.08 per cent government security maturing 2022, the 7.83 per cent government security maturing in 2018 and the 8.28 per cent government security maturing in 2027 also quoted higher at Rs 97.70, Rs 97.4025 and Rs 97.35, respectively.
CALL RATE EDGES UP
The call rate edged up to end at 8.10 per cent at the overnight call money market on Thursday due to good demand from borrowing banks.
