The rupee touched a two-week high of 55.12 on Thursday before closing at 55.26 against the dollar on a stronger euro and easing of overseas borrowings norms.
It had opened higher at 55.26 from Wednesday’s close of 55.49 against the dollar.
The Indian unit gained as the euro touched a seven-week high on hopes of monetary easing by the US Federal Reserve and the European Central Bank. Intra-day, the rupee moved in the range of 55.12 and 55.30 against the greenback.
Further, the rupee gained after the Finance Ministry, on Wednesday, relaxed the External Commercial Borrowings (ECB) norms that will allow foreign investors to invest up to $5 billion in rupee bonds within the overall corporate bond limit of $45 billion.
Call flat; bonds ease
The overnight call money rates ended flat at 8.10 per cent from its Wednesday’s close. The rates for the call money market moved in the 7.80-8.10 per cent range.
The 8.15 per cent government security maturing in 2022 closed lower at Rs 99.46 (yield: 8.22 per cent) from its previous close of Rs 99.51 (yield: 8.22 per cent) on Wednesday.
The widely traded 8.33 per cent security maturing in 2026 ended lower at Rs 99.48 (yield: 8.39 per cent) from Wednesday’s close of Rs 99.56 (yield: 8.38 per cent). >beena.parmar@thehindu.co.in