The rupee on Wednesday recovered marginally by seven paise to close at 49.29/30 against the US dollar amid sustained capital inflows. Forex dealers said fresh selling of the dollar by exporters on hopes of further fall in its value abroad aided the rupee’s value.
The dollar index, comprising six major currencies, declined over 0.2 per cent in the European market. The local unit moved between 40.19 and 40.40 at the interbank foreign exchange market, before closing higher by seven paise at 40.29/30.
Meanwhile, the Bombay Stock exchange benchmark index Sensex rose 354 points to close at 18,202.41. Foreign institutional investors remained net buyers in equities, pumping $232.44 million yesterday. Till yesterday, these infused $4.41 billion in equities. The rupee premium for the forward dollar ended mixed on alternate bouts of buying and selling. The benchmark six-month forward dollar premium payable in July softened further to 155-1/2-157-1/2 paise from Tuesday’s close of 156-1/2-158-1/2 paise, while far-forward contracts maturing in January inched up to 282-284 paise from 281-283 paise previously.
Bonds settle mixed
Government securities (G-Secs) settled mixed on alternate bouts of buying and selling. The 9.15 per cent G-Sec maturing in 2024 improved to Rs 106.85 from Tuesday’s close of Rs 106.84, while its yield held steady at 8.27 per cent. The 8.97 per cent G-Sec maturing in 2030 firmed up to Rs 103.89 from Rs 103.68, while its yield moved down to 8.55 per cent from 8.57 per cent. However, the 8.79 per cent G-Sec maturing in 2021 declined to Rs 103.90 from Rs 104.02, while its yield moved up to 8.20 per cent from 8.18 per cent.
The Reserve Bank of India, under the Liquidity Adjustment Facility, purchased securities worth Rs 1,68,435 crore from 68 bids at the two-day repo auction at a fixed rate of 8.50 per cent.
Call rate recovers
The call rate recovered at the overnight call money market here on Wednesday due to fresh demand from borrowing banks and scarcity of liquidity in the banking system. The rate moved in a range of 9.00 per cent and 8.60 per cent before closing higher at 9.00 per cent, compared with yesterday’s closing level of 8.70 per cent.
