The rupee recovered its early losses and ended almost unchanged at 53.69 against the dollar on Thursday, after the Reserve Bank of India (RBI) increased the foreign institutional investors' investment limit in certain debt instruments by $5 billion each and removed lock-in period for investors abroad buying G-secs for the first time.
The rupee commenced lower at 53.77 a dollar from previous close of 53.67 a dollar and declined further to a low of 53.89 at the Interbank Foreign Exchange market, following sustained dollar demand from importers, mainly oil refiners.
Bonds remain bearish
Government bonds remained bearish on sustained selling pressure from banks and companies. The 8.33 per cent government security maturing in 2026 dipped to Rs 102.88 from Rs 103.02 previously, while its yield moved up to 7.98 per cent from 7.96 per cent. The 8.15 per cent government security maturing in 2022 dropped to Rs 101.72 from Rs 101.8550, while its yield gained to 7.89 per cent from 7.86 per cent.
Call rates end lower
Overnight rates ended lower at the call money market here on Thursday due to lack of demand from borrowing banks.
The rate finished lower at 7.90 per cent from eight per cent yesterday.