The rupee gained the most since June 1 on optimism global funds are stepping up purchases of the nation’s assets to benefit from growth in Asia’s third-biggest economy.
The rupee appreciated 0.4 per cent to 44.87 per dollar at close in Mumbai, according to data compiled by Bloomberg. The currency has lost 0.7 percent this quarter, the worst performance after the Thai baht among Asia’s 10 most-used exchange rates.
BONDS DECLINE
Government bonds declined further on sustained selling pressure from banks and companies. The 7.80 per cent government security maturing in 2021 dropped to Rs 96.56 from Rs 96.78 yesterday, while its yield firmed up to 8.32 per cent from 8.28 per cent. The 8.08 per cent government security maturing in 2022 slipped to Rs 97.70 from Rs 97.88, while its yield moved up to 8.40 per cent from 8.38 per cent.
CALL RATE DECLINES
THE call rate ended lower at 7.60 per cent at the overnight call money market here today due to lack of demand from borrowing banks. The call money rate finished slightly lower than yesterday's closing level of 7.65 per cent.
