Notching gains for a third straight day, the rupee on Thursday gained 18 paise to end at nearly a one-week high of 54.57 against the US currency on continued dollar selling by exporters and some banks, amid weak cues from the foreign exchange market.
Sustained capital inflows aided the sentiment even as domestic stocks closed stable, said forex dealers.
At the Interbank Foreign Exchange market, the rupee resumed stable at its overnight closing level of 54.75 and immediately touched a low of 54.78. However, it later turned positive and rallied to a high of 54.56 before concluding at 54.57, a rise of 18 paise or 0.33 per cent.
Bond yield drops to 27-month low
The yield on the 10-year benchmark government security fell to a 27-month low on Thursday due to rate cut hopes expected later this month. The 8.15 per cent 2022 gilt yield ended at 7.88 per cent compared with previous close of 7.90 per cent on Wednesday.
The yield on the 10-year benchmark had ended at 7.84 per cent on September 29, 2010. The yield has dropped by 30 basis points since the end of November.
Call rates end steady
Call money rates at the overnight market ended stable as demand from borrowing banks matched supplies. The rate ended steady at 7.95 per cent. It moved in a range of 8.10 per cent and 7.90 per cent.