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Rupee dips on Europe worries

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Agencies Mumbai
Last Updated : Jan 20 2013 | 11:53 PM IST

The rupee dropped to its lowest in more than four and a half months, as concern that Europe’s debt crisis was spreading damped demand for emerging-market assets. The currency fell for an eighth day, its longest losing streak since October 2008, as exchange data showed foreign investors cut holdings of the nation’s stocks by $1.24 billion this month. The cost of insuring France’s government debt from default rose to a record yesterday.

BONDS END MIXED
Government securities ended mixed, with a downward bias on alternate bouts of buying and selling. The 7.80 per cent government security maturing in 2021 fell back to Rs 97.30 from Rs 97.40, while its yield rose to 8.21 per cent from 8.19 per cent yesterday. The 8.13 per cent government security maturing in 2022 also dropped to Rs 98.59 from Rs 98.70.

CALL RATE RECOVERS
The call rate declined on the overnight call money market on Thursday due to excess liquidity in the banking system. The rate initially rose to a high of 8.10 per cent but later dropped to a low of 7.50 per cent before ending lower at 7.75 per cent.

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First Published: Aug 12 2011 | 12:48 AM IST

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