Mumbai: The rupee on Thursday regained major part of overnight losses and was quoted at 40.80/81 against the US currency due to fresh capital inflows amid mixed dollar overseas.
In volatile trade at the interbank foreign exchange market, the Indian unit opened strong at 40.82/85 a dollar from Wednesday’s close of 40.9750/9850 per dollar. It later improved further to 40.80/81 a dollar, showing a smart recovery of nearly 16 paise.
There was lack of demand from importers, expecting the dollar to go down further and also there was no intervention from the central bank in early trade, which boosted the rupee sentiment.
The Reserve Bank of India bought over $2 billion during April through intervention in the forex market as per the data.
Dealers attributed overnight fall in the rupee to dollar buying by importers and a rise in US treasury yields that lifted the currency against major currencies.
The rupee premiums on forward dollar ended lower due to fairly good receipts by exporters. Benchmark six-month forward dollar premiums payable in November ended at 56-58 paise, lower from 61-63 paise on Wednesday and the far-forwards maturing in May closed substantially down at 111-114 paise from 119-120 paise previously.
In cross-currency trades, the rupee also improved against the British sterling and the Japanese yen, but eased modestly against the euro.
Prices of select government bond prices firmed up moderately on good demand from banks and corporates while call rates declined marginally to 3.04% on the overnight call money market here on Thursday.
Select government bonds hardened by on an average of 25-60 paise.
The 7.49% government security maturing in 2017 firmed up to Rs94.38/40 from Rs93.92/95 previously, while its yield eased to 8.34% from at 8.40%.
The 7.38% government security maturing in 2015 closed higher at Rs94.92/95 as against Rs94.35/39 previously while its yield dropped to 8.24 from 8.34%.
The 8.07% government security maturing in 2017 moved up to Rs99.07/10 from Rs98.80/87.