Despite paring initial gains, the rupee closed a tad stronger at 53.21 against the dollar due to a weaker American currency. On Thursday, the unit opened stronger at 53.23 per dollar and touched a high of 53.06 in early trade on increased expectations of revival of the economy post policy rate cut and stake sale announcements. However, before staging a recovery, the rupee fell to a low of 53.37 in the afternoon trades on the back of month-end dollar demand from oil importers and weak domestic equity market. “The rupee gains are on account of hopes of capital inflows and economic revival hopes. It is likely to remain weak in the month ahead,” said Vivek Mhatre, General Manager, Treasury, Union Bank of India.
Call Rates and G-Secs
The inter-bank call money markets closed marginally lower at 7.80 per cent. The call rates had opened flat from Wednesday’s close of 7.85 per cent. The 8.15 per cent government security, which matures in 2022, ended lower at Rs 101.54 (yield: 7.91 per cent) from a close of Rs 101.68 (yield: 7.89 per cent) on Wednesday.