The rupee ended 8 paise higher at 60.35 to a dollar against the previous close of 60.43 on the back of dollar selling by banks and exporters. In intra-day trade, the domestic unit touched a high of 60.26 per dollar and a low of 60.35. Abhishek Goenka, Founder and CEO, India Forex Advisors said, “The weak US dollar in the global markets was seen supporting the gains in the rupee. Strong Asian currencies across the board were another factor for the appreciation in the rupee.” Currency dealers are closely tracking the two-day meeting of the US Federal Reserve which will conclude today. According to Goenka, a hawkish stance from the Fed is likely to push US dollar higher, thereby putting pressure on emerging market currencies.
Call rates up, bonds flat
The overnight call money rate (the rate at which banks borrow money from each other to overcome short-term liquidity mismatches) ended higher at 9 per cent against the previous close of 8.45 per cent. The yield on 10-year benchmark 8.83 per cent bond, maturing in 2023, remained flat from the previous close of 8.82 per cent. The price also remained flat at ₹100. Bond yields and prices move in opposite directions.