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95/114.05 with banks unwilling to hold dollars with high short term rupee interest rates, and the central bank staying in the sidelines, dealers said.
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On Wednesday the central bank rejected bids for an entire Treasury bill auction of 10.
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5 billion rupees.
Overnight money rates are now around 9.
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25 percent.
Earlier in the week, overnight rates tightened with state bank borrowing aggressively but the pressure has since eased, dealer said.
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Excess liquidity has been rising in the markets and the central bank has also stayed out of forex markets, allowing the rupee to go up.
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Central Bank purchases increase liquidity.
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The semi-official pegged rates is now around 113.
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95/45 dealers said.
Banks are also not carrying overnight positions on dollars, amid high rupee rates.
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