The rupee ended 30 paise stronger at one-month high of 62.06 against the dollar on persistent dollar selling by banks and exporters amid inflows due to a government firm’s share sale.
The domestic unit opened a tad weaker at 62.40 per dollar as compared with previous close of 62.36 on Tuesday.
The second day of follow-on-public offer of Power Grid Corporation triggered inflows into the equity market by investors. The issue is open till Thursday for institutional buyers and it will close a day later for retail investors.
The unit moved in the 62.04 to 62.55 per dollar range at the Interbank Foreign Exchange market.
Treasury officials said that the rupee is likely to remain in the 61-63 per dollar range on concerns of uncertainty over the US Fed’s decision to roll back its monetary stimulus and the upcoming election results.
Also, the rupee is supported by higher-than-expected GDP growth and a more benign current account deficit, though the dollar demand by oil marketing companies in the market is likely to limit the gains.
Call rates, G-secs
The inter-bank call money rate, the rate at which banks borrow from each other to meet their short-term requirements, closed higher at 7.10 per cent against Tuesday’s close of 6.78 per cent.
The 7.16 per cent benchmark government security, which matures in 2023, closed weaker at Rs 87.92 from Rs 88.04. Yields on the security hardened to 9.09 per cent from 9.04 per cent.