Rupee rebounds to 60.23 on fresh dollar selling

MUMBAI : The rupee opened strong by 7 paise at 60.23 against the dollar in early trade at the Interbank Foreign Exchange market today on fresh selling of the US currency by exporters amid sustained foreign capital inflows.

The local currency had shed two paise to close at over one-month low of 60.30 per dollar yesterday on fag-end demand for the American currency from banks and importers.

Dealers expect the rupee to trade in a tight range. The dollar index, which measures the US currency’s strength against major global currencies, was trading marginally lower at 80.55 against its previous close of 80.56

They said besides dollar selling by exporters, gains in other currencies against the American unit overseas and a higher opening in the domestic equity market also supported the rupee.

Meanwhile, the benchmark BSE index Sensex rose 119.33 points or 0.46 per cent to 25,834.50 in early trade. Call rates, G-Secs

The inter-bank call money rate, the rate at which banks borrow short-term funds from each other to tide over liquidity mismatches, opened lower at 9 per cent against the previous close of 9.05 per cent.

Yield on the benchmark 8.83 per cent government bond maturing in 2023 eased to 8.66 per cent compared to the previous close of 8.69 per cent. The prices rose to ₹1001 from ₹100.84 on Monday. Bond yields and prices move in opposite directions.

Source : thehindubusinessline.com