After hitting a one-month low, the rupee recovered to end flat on Tuesday at 61.74 against the dollar amid demand for the American currency from oil importers and sale by foreign banks.
The domestic unit opened 4 paise weaker at 61.78 as against Monday’s close of 61.74 per dollar. It declined to 61.87 due to a stronger dollar and demand for the greenback.
However, optimism that new stimulus measures in Japan would continue to push foreign investors into emerging markets offset the sentiments and the rupee strengthened to 61.70 at the Interbank Foreign Exchange market.
The rupee is likely to trade with a downward bias ahead of the monetary policy due in December first week and weakened global economic scenario.
Call Rates, Bond yields fall
The inter-bank call money rate, the rate at which banks borrow short-term funds from one another, ended at 7.85 per cent as compared with the previous close of 8.15 per cent.
Yield on the 10-year benchmark 8.40 per cent government security, maturing in 2024, softened to 8.15 per cent against Monday’s close of 8.18 per cent. The price of the bond rose to Rs 101.61 against the previous close of Rs. 101.43.