Rupee declines in volatile trade

The rupee fell by 10 paise to close at a nearly two-week low of 53.07/08 against the dollar. Continued capital inflows, however, capped the downslide. The domestic unit opened sharply lower at 53.35/36 a dollar against the previous close of 52.97/98. Later, it fell further to the day’s low of 53.51 on sluggish local stocks.

Bonds decline
Government bonds fell back sharply on fresh selling by banks and companies. The 8.79 per cent government security maturing in 2021 dropped to Rs 101.6475 from Rs 102.05, while its yield shot up to 8.54 per cent.

Call rate remains steady
The call rate was stable at the overnight call money market. It closed at its previous closing level of 8.50 per cent.