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Rupee up 14 paise on CAD, US govt shutdown

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Agencies Mumbai
The rupee on Tuesday rose 14 paise to 62.47 against the dollar, supported by better-than-expected current account data and a weakening US currency. Fresh dollar sales by exporters also helped the rupee. However, capital outflows capped the gains, a dealer said. The rupee resumed stable at the previous closing level of 62.60 a dollar and touched a low of 62.61 at the interbank foreign exchange market.

It later climbed to a high of 62.17 as local equities recovered and exporters sold dollars. The rupee pared its mid-session gains on late dollar demand from importers and fell to settle at 62.46, a rise of 14 paise or 0.22 per cent.
 
Traders said the US government shutdown was seen having a negative impact on economic growth, which might delay the tapering of the US Federal Reserve's massive bond-purchase programme.

Bonds recover
Government securities (G-Sec) recovered on fresh buying support from banks and corporates. The 7.16 per cent government security maturing in 2023 climbed to Rs 89.9075 from Rs 89.68 on Monday, while its yield fell to 8.73 per cent from 8.77 per cent. The 8.28 per cent government security maturing in 2027 moved up to Rs 93.6350 from Rs 93.25, while its yield declined to 9.09 per cent from 9.14 per cent.

Call rate ends lower
Call money rates turned lower at the overnight market on Tuesday due to lack of demand from borrowing banks. The rates ended lower at 9.35 per cent from 9.45 per cent on Tuesday. It moved in a range of 9.70 per cent and 9.25 per cent.

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First Published: Oct 02 2013 | 12:15 AM IST

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