The rupee was trading marginally strong by 6 paise at 61.47 against the dollar at 12.52 p.m. local time on mild dollar selling by banks and exporters.
The rupee shed 12 paise to 61.65 per dollar in the opening trade against the previous close of 61.53 on the back of dollar demand from importers.
The domestic unit has been gaining on the back of dollar weakness and dollar selling by banks and exporters, triggered by weakness in the greenback overseas.
Wholesale price inflation
December CPI inflation number released on Monday stood substantially lower at 9.87 per cent (11.16 per cent in November), lowest since September. December wholesale price inflation data is scheduled for release today.
Experts suggest this could keep the Reserve Bank of India away from hiking key interest rate further, by maintaining a status quo in its monetary policy on January 28, thereby supporting growth.
According to Abhishek Goenka, Founder and Chief Executive Officer of India Forex Advisors said, after witnessing gains in the last few sessions, the rupee is seen weakening slightly against the US dollar today as the US dollar index has strengthened taking cues from better-than-expected retail sales data.
Call rates, G-Secs
The inter-bank call money rate, the rate at which banks borrow short-term money from each other, opened higher at 8.70 per cent against the previous close of 8.75 per cent.
Yield on benchmark 8.83 per cent government bond, maturing in 2023, softened to 8.67 per cent from the previous close of 8.71 per cent. Prices ended higher at Rs 101 from Rs 100.76.
