Amid a volatile trade, the rupee ended stronger at 54.72 against the dollar as Asian currencies rose on positive global markets. The Indian unit had closed at 54.94 per dollar on Tuesday.

On Wednesday, it opened higher at 54.70 on positive domestic equity market and a stronger euro ahead of the European Central Bank’s monetary policy meeting on Thursday, supporting the rupee sentiment.

However, after touching an intra-day high of 54.61, the rupee pared gains on the back of a stronger dollar and demand for the greenback from importers and banks. The domestic currency fell to a low of 54.88 per dollar in the late afternoon trades.

However, the rupee recovered on positive global markets and investors’ expectations that the Reserve Bank of India may cut interest rates at its mid-quarter monetary policy review on March 19.

Call rates and G-Secs

The inter-bank call money rates rose to 7.90 from a close of 6.75 per cent yesterday. It moved in the 7.50 per cent and 7.95 per cent range.

The 8.15 per cent government security, which matures in 2022, was trading higher at Rs 101.86 from its previous close of Rs 101.78, while yields declined to 7.86 per cent from 7.88 per cent.

beena.parmar@thehindu.co.in

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