RS up 7 paise as outcome of Feds policy meet awaited

Written by Agencies | Mumbai | Updated: Jun 20 2013, 06:38am hrs
Erasing early losses, rupee on Wednesday ended 7 paise higher at 58.70 first gain in three days on recovery in local stocks and fresh dollar selling by exporters ahead of the outcome of US Fed policy meet.

At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced better at 58.74 a dollar from previous close of 58.77, which is its all-time low on a closing basis. However, in a session marked with volatility the rupee moved erratically in a range of 58.61 and 58.91 against the US dollar. It ended at 58.70, a rise of 7 paise or 0.12%.

Traders are hoping Fed chairman Ben Bernanke will continue with the plan to buy $45 billion in treasuries and $40 billion in mortgage-backed securities each month.

Yields range-bound

Bond yields edged lower, tracking slight gains in the rupee.

The benchmark 10-year bond yield closed down 2 basis points (bps) at 7.26%. It moved in a range of 7.26% to 7.28% in the session.