Rupee strengthens to 54.37

Our Bureau Updated - July 03, 2012 at 06:05 PM.

Huge amount of dollar selling by foreign banks and positive sentiments have led the rupee gains.

Continuing the rally for the fourth straight session, the rupee strengthened to close at 54.37 on the back of high dollar selling by foreign banks.

“Huge amount of dollar selling by foreign banks and positive sentiments have led the rupee gains,” said a chief dealer of a nationalised bank.

Further, no oil buying from the oil companies has sustained the strengthening in the currency, the dealer added.

The domestic unit opened marginally higher at 55.41 to move over a rupee from yesterday’s close of 55.43 per US dollar.

Intra-day, the rupee moved in the range of 55.44 and 54.35 against the American currency.

Call rates and G-Secs

The call money rates closed at 8.00 per cent on Tuesday after it saw a movement from 8.00 to 8.30 per cent in the day’s trade. The volatility in the call market increased in the second half of the day’s session. The comparative figures were not available.

The 9.15 per cent government bond maturing in 2024 climbed higher at Rs 105.57 from Rs 105.31 on Monday, while its yield closed lower at 8.41 per cent from 8.45 per cent close.

The benchmark 8.79 per cent security maturing in 2021 closed at Rs 102.71 (yield of Rs 8.35 per cent), higher from a weak trade of Rs 102.57 (yield of 8.36 per cent) yesterday.

beena.parmar@thehindu.co.in

Published on July 3, 2012 04:34