The rupee closed stronger at 60.43 against the American currency as more corporates sold dollars to make good of a depreciating Indian currency.
The Indian currency opened almost flat at 60.61 (previous close: 60.62). In Intraday trade, the rupee moved in the 60.37 to 60.63 range.
Currency traders will be watchful of the outcome of the US Federal Reserve’s meeting on Wednesday. The US Fed is expected to announce a further paring of its bond buying programme by $10 billion to $45 billion from next month.
The overnight call money rate (the rate at which banks borrow money from each other to overcome short-term liquidity mismatches) closed lower at 8.45 per cent against the previous close of 8.70 per cent.
The yield on 10-year benchmark 8.83 per cent bond, maturing in 2023, softened 8.83 per cent (previous close of 8.85 per cent). Prices rose to `100 from `99.84 on Monday. Bond yields and prices move in opposite direction.