The rupee recovered from the opening losses to trade at 55.25 on expectations of more dollar inflow from foreign remittances.
The Central Board of Excise and Customs has announced that foreign exchange remittances to India from overseas will not attract service tax saying the term ‘service’ excludes transactions in money.
At 1.40 p.m., the domestic unit was trading at 55.37 against the dollar after opening lower at 55.72 against the dollar on weak euro and global markets.
Snapping a four-session losing streak on Tuesday, the rupee had closed at 55.38 against the dollar after the Euro Zone finance ministers agreed to offer Spain $37 billion this month to help its distressed banks.
Call Rates and G-Secs
The interbank call rates were trading steady at 8.10 per cent. The call money rates opened at 8.20 per cent from the previous close of 8.10 per cent.
The 9.15 per cent government bond, which matures in 2024, was trading marginally higher at Rs 106.18 (yield: 8.33 per cent) from yesterday’s close of Rs 106.03 (yield: 8.35 per cent).
The benchmark 8.79 per cent bond maturing in 2021 was trading at Rs 103.20 (yield: 8.28 per cent) from its previous close of Rs 103.06 (yield: 8.3 per cent).
