The rupee gained for a second consecutive day to end 35 paise higher at 62.08 to the dollar against the previous close of 62.43 on heavy dollar selling by banks and major exporters.

In intra-day trades, the rupee touched a high 61.98 and a low of 62.38.

According to a dealer with a public sector bank, large selling of dollars by foreign banks due to offshore inflows helped rupee post gains.

The Reserve Bank of India on Wednesday relaxed the minimum maturity tenure for banks’ foreign currency borrowings to one year from three years so that they can use the central bank’s swap facility.

Call rates, bond yields ease

The inter-bank call money rates, the rates at which banks borrow from each other to meet their short-term fund requirements, ended lower at 9.48 per cent from the previous close of 9.50 per cent.

The 7.16 per cent government security, which matures in 2023, ended higher at Rs 89.96 from the previous close of Rs 89.54. Yields softened to 8.71 per cent from the previous close of 8.79 per cent.

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