The rupee ended above the 60-mark for the second consecutive day. However, it closed a tad stronger at 60.14 to the dollar on the back of dollar selling and a robust recovery in the domestic equity market. The BSE-benchmark Sensex rallied 233 points (1.22 per cent) to end at 19,410.84 points. The domestic unit opened at 60 per dollar as against the previous close of 60.26 on Wednesday. It touched an intra-day high of 59.91 on mild dollar selling by banks and exporters. However, comments by the RBI Governor that it had not set any target for the currency level limited the gains. The unit dropped to an intra-day low of 60.39 against the dollar. The rupee had touched an all-time low of 60.76 against the dollar on June 26. Analysts expect it to remain under pressure on account of a stronger dollar amid weak sentiments in the global market. In addition, a high Current Account Deficit (CAD) continues to weigh on the Indian currency. CAD touched a record high of 4.8 per cent of the GDP in the fiscal year 2012-13 due to high oil and gold imports.
Call rates and G-Secs
The inter-bank call money rates closed lower at 6.35 per cent from the previous close of 6.50 per cent. Easy liquidity in the banking system saw the benchmark 7.16 per cent government security, which matures in 2023, end higher at Rs 98.20 from the previous close of Rs 97.63. Yields softened sharply to 7.41 per cent from 7.50 per cent.