The rupee on Tuesday fell back after hitting two-week high levels to close with a loss of 12 paise at 54.61 against the dollar, on heavy demand for the US currency from importers despite heavy capital inflows. Dollar demand from importers, mainly oil refiners, and some banks as also a rise in the dollar abroad later weighed on the rupee.
Bonds react downward
Government bonds reacted downwards on selling pressure from banks and companies. The 8.15 per cent government security maturing in 2022 slipped to Rs 102.08 from Rs 102.29 previously, while its yield moved up to 7.83 per cent from 7.80 per cent. The 8.33 per cent government security maturing in 2026 dropped to Rs 103.54 from Rs 103.74, while its yield gained to 7.90 per cent from 7.87 per cent.
Call rates end higher
Overnight money rates ended higher on good demand from borrowing banks. It finished higher at 8.05 per cent from eight per cent yesterday. It moved in a range of 8.15 per cent and 7.95 per cent.