The rupee staged a recovery during the later half of the trading session to end 55.1850 per dollar on Monday.
It opened at 55.20 and touched an intraday high of 55.37. The rupee was strong towards the second half of last week on suspected RBI intervention to prop up the currency after it touched 56 to the dollar.
The rupee has depreciated 25 per cent since August 2011. Some of this depreciation has been due to global factors. Mr Devendra Nevgi, Principal Partner, Delta Global Partners, said in a research note, "In the same period, the dollar has appreciated 15 per cent vis-a-vis the euro. We presume that USD as the proxy to global risk appetite (thus to India ’s external stability) and for sake of simplicity that the beta of INR to global risk appetite at 1.00 (though in global funding crisis it would move higher than 1). So around 59 per cent of the INR’s move since July 2011 can be explained by corresponding appreciation in USD. The balance 41 per cent is due to domestic factors such as policy paralysis and inflation"
Call rates, G-Secs move up
Call rates closed at 8.10 per cent after touching an intraday high of 8.25. Call rates are expected to be moderate as this is the second week of the reporting fortnight. Most banks have reportedly covered their requirements last week itself.
The benchmark 8.79 per cent 2021 government bond closed at Rs 101.77. The yield at this rate is 8.51 per cent.