Paring early losses, the rupee on Wednesday gained 19 paise against the US dollar to close at a 13-week high of 49.27/28 amid FII inflows into Indian equities and continued selling of the American currency by exporters.
Forex dealers said dollar was under pressure in the overseas market as well. The rupee moved between 49.23 and 49.70 against the dollar at the Interbank Foreign Exchange (Forex) market, before closing 19 paise, or 0.38 per cent stronger, at 49.27/28, the highest level since November 4.
Meanwhile, the BSE benchmark index Sensex closed higher by 107 points at 17,300.58. Foreign Institutional Investors (FIIs), which sold shares worth $16.09 million on January 30, infused $129.83 million yesterday, according to Sebi data.
Bonds rally for third day
The government securities (G-Sec) rallied for the third day in a row persistent demand from banks and corporates. The 8.79 per cent (G-Sec) maturing in 2021 shot up to Rs 104.2750 from Rs 103.4375 yesterday, while its yield tumbled to 8.14 per cent from 8.27 per cent. The 9.15 per cent (G-Sec) maturing in 2024 also flared up to 106.9975 from 105.8850, while its yield plunged to 8.25 per cent from to 8.39 per cent previously.
Call rate recover
The call rate recovered on lack of liquidity in the banking system.After moving in a range of 9.15 per cent and 8.60 per cent, the overnight call money rate finished higher at 8.90 per cent from 8.60 per cent yesterday. The Reserve Bank of India under the Liquidity Adjustment Facility purchased securities worth Rs 1,27,140 crore from 51 bids at the one-day repo auction at a fixed rate of 8.50 per cent and sold securities worth Rs 30 crore from one bid at the one-day reverse repo auction at a fixed rate of 7.50 per cent.
