The rupee was trading strong by 11 paise at 61.43 against the dollar at 2.38 p.m. local time.
The rupee gained 14 paise to 61.40 per dollar in the opening trade against the previous close of 61.54 on the back of stable capital inflows.
“The net FII investment in the debt market has risen by $2 billion, with fresh inflows into Indian bonds. FIIs claim Indian debt has turned attractive again, as bond yields are high and the forward premia, or hedging cost, has also declined from the highs touched in August,” said Abhishek Goenka, Founder and CEO, India Forex Advisors.
Call rates, government securities
The inter-bank call money rate, the rate at which banks borrow short-term money from each other, opened higher at 8.75 per cent against the previous close of 8.80 per cent.
Yield on the benchmark 8.83 per cent government bond, maturing in 2023, softened to 8.59 per cent from the previous close of 8.61 per cent. Prices were up at Rs 101.50 against the previous close of Rs 101.89.
