The rupee gained 39 paise to end at 59.35 per dollar against the previous close of 59.74 on the back of reported intervention by the Reserve Bank of India in the last one hour of trading on Friday.

The domestic unit was hovering around 59.70 till 4 p.m. However, after the RBI intervention the rupee strengthened to 59.35, said a dealer.

Intra-day, the rupee touched a high of 59.31 and a low of 59.86. The rupee opened at 59.74/dollar.

Prime Minister Manmohan Singh said today that the RBI may consider reversing its recent hike in short-term interest rates after it succeeds in stabilising the rupee against the dollar.

Market players have concerns about the success of the steps taken by the RBI after it rejected most bids at a bond auction where institutional investors demanded higher yields.

Call rises, bonds slip

The interbank call money rates ended a tad higher at 6.30 per cent from the previous close of 6.25 per cent.

The widely traded 8.33 per cent government bond, maturing in 2026, ended higher at Rs 102 from the previous close of Rs 101.85. Yields softened a tad to 8.07 per cent from the previous close of 8.10 per cent.

The 7.16 per cent benchmark government security, which matures in 2023, ended at Rs 94.74. Yields softened a tad to 7.93 per cent from the previous close of 7.99 per cent.

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