The rupee gained 40 paise after foreign investors poured money into the country’s debt markets and on dollar sales by a large company. The currency unit closed at 63.18 against the greenback against a close of 63.58 on Tuesday. Suresh Nair, Director, Admisi Forex, said, “The rupee strengthened on Wednesday on dollar sales by a large engineering and construction firm through custodian banks.” Intra-day, the rupee moved in the range of 63.16 to 63.56.
Bonds soften, call rates end higher
The benchmark government security yields softened by about 5 basis points to close at 7.85 per cent against Tuesday’s close of 7.90 per cent. The price of the security rose to ₹103.60 at close against the previous close of ₹103.31. Bond prices and yields move in an opposite direction. The inter-bank call money rates, the rates at which banks borrow from each other to overcome liquidity mismatches, closed at 8 per cent against the previous close of 7.50 per cent.