Mumbai, Dec 24:
The rupee gained 13 paise to 61.83 per dollar in the opening trade against the previous close of 61.96 dollar on the back of a strong opening in the domestic equity market.
"Exporters are hedging their positions with some dollar selling towards the end of the quarter. Also, RBI is ensuring that the volatility remains under control. RBI is said to have bought about $7 billion around 61 levels. The effort to get inflows to match the outflows has stabilised the rupee," said a dealer with a public sector bank.
Further, the central bank has maintained that it would take care not to overtighten the monetary policy though a higher inflation could result in some action on tightening the policy going forward. A tighter policy is likely to have a downward bias on the markets.
Call rates and G-secs
The inter-bank call money rate, the rate at which banks borrow short-term funds from each other, opened higher at 8.85 per cent against the previous close of 8.75 per cent.
The widely traded 8.83 per cent government security, which matures in 2023, opened higher at Rs 100.10 from the previous close of Rs 100.07.
Yields on the security remained flat at 8.81 per cent. Bond prices and yields move in the opposite direction.
(This article was published on December 24, 2013)
Keywords: Rupee, dollar, dollar selling, dollar inflows, dollar outflows, RBI, monetary policy, tighter monetary policy, inflation, call rates, government security,
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