The rupee was trading strong by 31 paise at 62.09 against the dollar at 3.35 p.m. local time due to increased selling of the US currency and inflows into the debt and equity market.
After opening 22 paise higher at 62.18 per dollar, the rupee strengthened past the 62 levels to trade at 61.88 against the dollar in the afternoon session.
The local currency hovered in the 61.88-62.33 levels.
On Monday, the domestic unit had logged its biggest gain in about one-and-a-half month as it strengthened by 71 paise.
The dollar fell on Monday following comments by Janet Yellen, US Federal Reserve’s next chief, that she would continue the $85 billion-a-month monetary stimulus programme. This boosted all Asian currencies.
The statement by US Fed chief Ben Bernanke due today evening will be keenly watched by the market players.
Meanwhile, the BSE-benchmark Sensex ended at 20,881.22, up 30.48 points or 0.15 per cent.
Call rates, G-secs
The overnight call money rate, the rate at which banks borrow short-term funds from each other, was trading a tad higher at 8.80 per cent against Monday’s close of 8.75 per cent.
Yield on the 10-year benchmark bond, 7.16 per cent maturing in 2023, was trading flat at 9.02 per cent. Bond prices were trading at Rs 88.31.
The bond went untraded on Monday as the RBI’s purchase of other bonds via open market operations (OMOs) showed higher trading activity.
