Tracking domestic equity markets, the rupee ended stronger by 11 paise at 60.11 amid mild dollar selling by exporters. The local unit had closed at 60.22 per dollar on Monday.

It opened higher at 60.10 at the Interbank foreign exchange market on capital flows driving the sentiments. Although it declined to 60.23 due to mild outflows in the equity market, the rupee recovered to 60.06 per dollar in the afternoon trading session.

The BSE-benchmark Sensex ended at 22,508.42 points, higher by 63 points (0.28 per cent) over its previous close on the BSE.

Investors are taking a cautious stand not to take heavy positions ahead of the election results due on May 16, experts say.

Intraday, the Indian rupee movement against the dollar was in a narrow range of 17 paise,

“We see the rupee momentum going downwards with near term support for rupee per dollar at 60 levels. Breaking below 59.50 might attract additional selling pressure towards 58.00 levels. Resistance is at 61.10 and rallies to 61.10 may attract selling,” according to Suresh Nair, Director, Admisi Forex India Pvt Ltd.

Call rates lower; bond yields up

Amid high volatility, the overnight call money rate (the rate at which banks borrow money from each other to overcome short-term liquidity mismatches) closed sharply lower at 7.05 per cent against the previous close of 7.50 per cent. The call money market moved in a wide range of 7.05 to 8.35 per cent.

The yield on 10-year benchmark 8.83 per cent bond, maturing in 2023, hardened to 8.78 per cent from Monday’s 8.73 per cent. Bond prices dropped to Rs 100.31 from Rs 100.59. Bond yields and prices move in opposite directions.

beena.parmar@thehindu.co.in

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