The rupee gained for a second consecutive session to close at 60.91 against the dollar on the back of stronger Asian currencies on expectations that US Federal Reserve would not hike policy rates.
After opening stronger by 11 paise at 60.95 per dollar against the previous close of 61.06, the rupee gained to 60.88 tracking Asian currencies and capital flows into the domestic equity market.
Emerging markets were also helped by news of China’s Central Bank’s investment of a combined 500 billion yuan ($81.35 billion) into the country's top banks.
During the day, the domestic unit declined to 61.02 as investors awaited the outcome of the US central bank meeting later on Wednesday.
Call drops, Bond rates end flat
The interbank call money rate, the rate at which banks borrow short-term funds from one another, ended lower at 7.95 per cent from the previous close of 7.80 per cent on Tuesday.
The price and yield on the benchmark 8.40 per cent government security maturing in 2024, closed flat from Tuesday’s close of Rs 99.34 and 8.49 per cent, respectively.