A possible delay in Western military action against Syria and the Reserve Bank of India’s move to provide a separate window for oil importers propped up the rupee on Thursday.The currency closed at 66.58 against the dollar from the previous low of 68.80.

In what has become a routine, the rupee swung in a wide range of 139 paise during the day’s trade, between a high of 66.51 and a low of 67.90 respectively. International oil prices fell below $115 a barrel on reduced chances of a major disruption in Brent crude supply with the delayed action on Syria.

“Oil came off from over $115 a barrel as tensions eased over action against Syria, and almost all the emerging market currencies gained against the greenback,” said Krishnamoorty Harihar, Treasurer, FirstRand Bank. Currency market participants were, however, unsure if one could safely say if the gains were here to stay. “ On Wednesday evening, the Reserve Bank of India opened a dedicated window for oil importers to meet their daily dollar requirements. This move is likely to ease the volatility in the currency markets, according to market men.

Call rates, G-Sec

The inter-bank call money rates, the rates at which banks borrow money from each other to meet their short term fund requirements, closed flat from its previous close of 10.25 per cent. The 7.16 per cent government security, which matures in 2022, closed sharply higher at Rs 89.59 from the previous close of Rs 88.45.

Yields softened to 8.77 per cent from the previous close of 8.97 per cent.

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