The rupee strengthened on Monday by 10 paise to settle at 55.06 on dollar selling by exporters amid weakness in the American currency in international markets.
Rupee commenced higher at 55.07 a dollar at the Interbank Foreign Exchange (Forex) market from last Friday’s close of 55.16.
The dollar index, a gauge of six major global currencies, was down by 0.22% while New York crude oil was quoting below $88 a barrel in Europe. This helped rupee gain strength.
It moved in a narrow range of 54.94 and 55.11 before settling at 55.06, a rise of 10 paise or 0.18%. Last Friday, it had fallen by 46 paise or 0.84%.
Forex traders said rupee mirrored the domestic stock market movement with the BSE benchmark Sensex today snapping its six-session string of losses by closing 29.63 points up.
Foreign institutional investors (FIIs) net sold shares worth just R1.52 crore as provisional data from exchanges. Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said, “Rupee traded in a volatile manner cramped between global and domestic sentiments.”
Bond yields end steady
Mumbai, Nov 19: Bond yields ended steady on Monday as dealers awaited word from RBI on any possible debt buy to ease a cash crunch in the banking system.
The benchmark 10-year bond yield ended steady at 8.19%, having traded in a narrow 8.19-8.20% band. Total volume on RBI’s electronic trading platform was at a low R8,670 crore compared with the usual R16,000-20,000 crore. Reuters