Tracking upward movement in stocks, the rupee on Monday reversed two days of losses by rising 37 paise to close at 53.47 on fresh selling of dollars from banks and exporters, amid FII inflows worth $45 million.
The rupee also got a sentiment boost after the dollar fell against euro on reports that a victory for Spanish prime minister Mariano Rajoy’s party in regional elections makes it easier for Spain to ask for a bailout. The rupee on Monday resumed lower at 53.90 per dollar as against the last weekend’s level of 53.84 per dollar at the Interbank Foreign Exchange (Forex) Market on good dollar buying from banks.
It, however, recovered afterwards to 53.46 per dollar before ending at 53.47 on renewed selling of dollars from banks due to strength in the domestic equity markets.
During the day, the rupee moved in a 44-paise range of 53.46 per dollar and 53.90 per dollar.
Bond yields flat; OMO, rate cut hopes remain
Government bonds ended flat on Monday, as traders abstained from taking aggressive positions ahead of the auction for unused debt limits later in the day and the crucial Reserve Bank of India policy review towards the end of the month.
The benchmark 10-year bond yield was flat at 8.13%, after trading in a very tight range of 8.12 to 8.13%.