Rs rises on demand for global risk assets

By : Agencies
Last Updated: Wed, Oct 17, 2012 04:29 hrs
An employee counts Indian currency notes at a cash counter inside a bank in Kolkata

The rupee rose on Tuesday, snapping a two-session losing streak as demand for global risk assets was bolstered by better-than-expected US and German economic indicators, and talk Spain may soon ask for a bailout.

The partially convertible rupee closed at 52.87/88 per dollar, stronger than its previous close of 53.015/0250, as per the State Bank of India closing rate.

Bonds surge on good demand

Government securities (G-sec) rose on good demand from banks and companies.

The 8.15 per cent G-sec maturing in 2022 climbed to Rs 99.97 from Rs 99.86 previously, while its yield eased 8.15 per cent from 8.17 per cent. The 8.33 per cent G-sec maturing in 2026 advanced to Rs 100.73 from 100.58, while its yield moved down to 8.24 per cent from 8.26 per cent. The 8.19 per cent G-sec maturing in 2020 also rose to Rs 99.99 from Rs 99.90, while its yield eased to 8.19 per cent from 8.21 per cent.

Call rates end lower
Call rates finished slightly lower at the overnight money market due to a slackening in demand from borrowing banks. The rate edged lower to end at 8.06 per cent from 8.07 per cent yesterday. It moved in a range of 8.10 per cent and 7.95 per cent.

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