Tracking upward movement in stocks, the rupee today reversed two days of losses by rising 37 paise to close at 53.47 on fresh selling of dollars from banks and exporters, amid FII inflows worth $45 million.
The rupee also got a sentiment boost after US dollar fell against Euro on reports that a victory for Spanish Prime Minister Mariano Rajoy’s party in regional elections makes it easier for Spain to ask for a bailout.
The rupee today resumed lower at 53.90 a dollar against the last weekend’s level of 53.84 a dollar at the Interbank Foreign Exchange (Forex) Market on good dollar buying from banks.
It, however, recovered afterwards to 53.46 before ending at 53.47 a dollar on renewed selling of dollars from banks due to strength in the domestic equity markets.
During the day, the rupee moved in a 44-paise range between 53.46 and 53.90 per dollar.
Also, the proposed auction of Rs 5,385 crore (about $1 billion) of State Government Securities on Tuesday (October 23) by the Reserve Bank of India on behalf of eight states in the country is likely to attract some inflows. This may have the potential to strengthen the rupee further.
Call rates, G-Secs
The inter bank call rates opened higher at 8.10 per cent against Friday’s close of 7.90 per cent.
The 8.15 per cent government security, which matures in 2022, opened slightly higher at Rs 100.16 (yield: 8.11 per cent). It had closed at Rs 100.13 (yield: 8.12 per cent) on Friday.
