Rupee up 29 paise at 61.56 Vs dollar

The rupee was trading up by 29 paise at 61.56 against the dollar at 12.10 p.m. local time due to dollar selling by banks and exporters.

Banks and exporters preferred to reduce their dollar position on hopes of more capital inflows into the equity market.

The rupee gained 40 paise to 61.45 per dollar in the opening trade against the previous close of 61.85.

In New York, the dollar jumped against the yen yesterday as Senate leaders agreed on a deal to reopen the government and raise the US debt ceiling, hours before the midnight deadline when the Treasury Department had said the US will hit its debt limit.

According to currency dealers, the dollar index is expected to strengthen, which will weigh on the domestic unit.

Call rates, G-Secs

The inter-bank call money rate, the rate at which banks borrow from each other to meet their short-term fund requirements, opened higher at 9.10 per cent against the previous close of 9 per cent.

The 7.16 per cent government security, which matures in 2023, opened higher at Rs 90.56 against the previous close of Rs 90.35.

The yields softened to 8.62 per cent from 8.66 per cent. Bond yields and prices move in opposite directions.

Source:http://www.thehindubusinessline.com/