The rupee ended almost flat at 62.53 (previous close: 62.56) against the dollar on a day marked by thin trades. The Indian currency remained passive for most of the day and traded in a narrow 62.50-62.82 range. It opened weaker at 61.81 on oil-related dollar demand, but recovered in late trades. A chief dealer of a public sector bank said the rupee is likely to be range bound in the 61.50 to 63.50 band this month.

Also, according to him, global telecom players like Vodafone and Telenor will convert their dollar holdings into rupees when their bids for spectrum are accepted. This is likely to support the Indian unit, but it is unlikely that the rupee will appreciate above 61 in the near term.

The interbank call money rate, the rate at which banks borrow money from each other to meet their short-term capital requirements, closed higher at 7.20 per cent from previous close of 7 per cent.

The yield on the 8.83 per cent government security, maturing in 2023, softened to 8.68 per cent from previous close of 8.73 per cent. The prices rose to ₹100.96 from previous close of ₹100.60.

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