The rupee closed stronger at 54.96 against the dollar amid dollar inflows and thin trading volumes on the eve of Christmas in the currency markets.
Foreign exchange markets will be closed on Tuesday for Christmas. Concern over the impending “fiscal cliff” in the US is likely to keep the rupee in a narrow trading range. “It was a quiet session for the rupee, which traded in the range of 25 paise.
However, it witnessed modest gains led by a recovery in the euro and a slight weakness in the US dollar index. Worldwide, all the major markets will remain closed on account of Christmas holidays, leading to low trading volumes in the Indian markets during the next couple of sessions,” said Abhishek Goenka, Founder and CEO, India Forex Advisors.
The rupee opened lower at 55.20 against Friday’s close of 55.05. Month-end dollar demand from oil and gold importers is also likely to cap the rupee’s gain.
Call rates, G-Secs
The interbank call money rates ended higher at 8.1 per cent. It had closed at 8 per cent on Friday. The 8.15 per cent benchmark Government security, which matures in 2022, closed higher at Rs 100.13 (yield, 8.13 per cent) from Friday’s close of Rs 100.04 (yield, 8.14 per cent).