The rupee gained for the sixth consecutive trading session on Monday against the dollar to end 20 paise higher at 62.27 tracking the strong Euro movement and increased dollar selling by exporters and banks. On Friday, the domestic currency had closed at 62.47 per dollar, its best weekly gain in two months.

 Monday, the currency opened 11 paise stronger at 62.36 at the Interbank Foreign Exchange market. After declining a tad to 62.37, it continued to gain during the day to touch 62.24 against the greenback.

The dollar continued to weaken against the Euro and other major currencies on continued positive sentiments of the US central bank’s stance last week that postponed its interest rate hike decision. This supported the rupee despite some outflows from the equity markets, forex dealers said. BSE-benchmark Sensex ended at 28,192, lower by 69 points (0.24 per cent) over the previous close on BSE.

 

Bonds yields and Call Rates

 

The yield on 10-year benchmark 8.40 per cent Government security maturing in 2024, edged up to 7.75 per cent from last week’s close of 7.74 per cent. During the day, amid thin volumes of trade, the yields moved in the narrow range of 7.73 to 7.75 per cent.

 The price of the security ended lower at Rs 104.21 as against Friday’s close of Rs. 104.27. The prices and yields of bonds move in opposite direction.

 The interbank call money rate, rate at which banks lend to each other to overcome overnight liquidity mismatches, ended 1 percentage point weaker at 6.90 per cent from 7.90 per cent. Intra-day, it moved between 6.25 to 7.90 per cent range.

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