The rupee strengthened to a five-and-a-half month high and touched 51.73 against the dollar as the second round of big-ticket reform bills are likely to be announced by the Cabinet today. At 2 pm, the domestic unit was trading at 51.85 per US dollar as hopes of reforms attract more capital inflows. The rupee opened stronger at 52.01 against the dollar from its previous close of 52.16 on Wednesday. It has gained two per cent in the last four sessions. Reform measures like the Companies Bill, Insurance Bill to raise the FDI (foreign direct investment) limit in the sector to 49 per cent (from 26 per cent) and Pension Bill besides the creation of a National Investment Board likely to be announced by the Government today will boost the currency. Call Rates and G-Secs The overnight call money rates were trading at 7.90 per cent. The call money market opened at 8.1 per cent from Wednesday’s close of 8.05 per cent. The 10-year benchmark 8.15 per cent government security maturing in 2022 was trading at Rs 100.05 from Rs 100, while yields were at 8.13 per cent from the previous close of 8.15 per cent.

Source