Rupee rises on RBI curbs on currency futures

Our Bureau Updated - March 12, 2018 at 04:21 PM.

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As Reserve Bank of India put a spoke in the wheel of speculatory trading in currency derivatives, the rupee closed relatively stronger at 60.14 against the dollar. The Indian unit had closed at 60.61 on Monday.

Also, a gain of 114.71 points in the domestic equity markets supported the Indian unit.

The rupee opened much stronger at 59.70.

Intraday, the rupee moved between a high and low of 59.65 and 60.48, respectively. “The rupee got strong support from the latest moves taken by the central bank and SEBI… Going ahead, tomorrow’s FOMC minutes and Bernanke's speech will be very important for the rupee and for the US dollar,” said Abhishek Goenka (Founder & CEO, India Forex Advisors).

However, according to currency analysts, gains due to the RBI’s announcement on putting a partial lid on speculative trading is only likely to have a limited impact on the Indian unit.

The markets world over are still worried over the withdrawal of the stimulus by the US. A cut-back in the US’ bond-purchase programme, which currently pumps $85 billion every month, will infuse little liquidity, leaving investors with little money to bring to the Indian shores.

Call down, bonds up

The interbank call money rates closed lower at 7.10 per cent from previous close of 7.65 per cent. The benchmark 7.16 per cent government security, which matures in 2023, closed higher at Rs 97.32 from previous close of Rs 97.17. Yields softened to 7.55 per cent from previous close of 7.57 per cent.

> satyanarayan.iyer@thehindu.co.in

Published on July 9, 2013 16:23