The rupee strengthened for the second consecutive day on Thursday and gained as much as 60 paise during the day’s trade as banks and exporters sold dollars.
Also, reports of foreign investors buying more into the country’s debt market buoyed currency market sentiments.
The Indian unit closed at 62.68 against the American currency, against Wednesday’s close of 63.18.
Intraday, the rupee moved in the 62.60 to 63.20 range.
The US Fed minutes released late on Wednesday indicated that it might raise rates in the middle of the year. If indeed this bears out, it could suck liquidity out of emerging markets like India. Also, the Fed has raised concerns about inadequate policy response from other central banks could affect growth and employment in US.
Call Rates, G-Sec
The benchmark government security yields closed at 7.86 per cent against Wednesday’s close of 7.85 per cent. The price of the security ended a tad lower at Rs 103.57 against the previous close of Rs 103.60. Bond prices and yields move in opposite directions.
The interbank call money rates, the rates at which banks borrow from each other to overcome liquidity mismatches, closed at 8.05 per cent against previous close of 8 per cent.