The rupee ended its four day losing pattern to gain 57 paise against the American currency after Euro Zone leaders agreed to bailout the struggling Spanish banks.
The rupee closed at 55.38 against the dollar after Euro Zone finance ministers agreed today to offer Spain $37 billion this month to help its distressed banks.
The domestic unit opened at 55.92 against the dollar. On Monday, it had largely tracked global cues and fell below the 56-level mark. In late trades, it recovered a little and closed at 55.95.
The domestic unit is expected to react to the country’s factory output numbers and developments in Euro Zone throughout the week. Developments in Euro-zone impacts the rupee directly as the country trades directly with the Euro Zone members.
Last week, when the European Central Bank had cut its key interest rates, the rupee sunk.
Call Rates, G-Secs
The interbank call rates, the rates at which banks borrow from each other to meet short-term capital requirements, opened higher at 8.2 per cent. The rates closed at 8.10 per cent.
The 8.79 per cent government security, which matures in 2021, opened slightly higher at Rs 103.09. It remained unchaged from previous closed of Rs 103.06 (yield: 8.3 per cent).