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Rupee down on weak stocks

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Agencies Mumbai
Last Updated : Jan 20 2013 | 2:43 AM IST

The rupee on Tuesday closed down by seven paise to settle at 52.02/03 against the dollar, owing to weakness in local stocks and fresh dollar demand from importers.

Forex dealers said fresh dollar demand from importers, mainly oil refiners, to meet their month-end needs, weighed on the rupee. At the interbank foreign exchange market, the domestic currency swung between 51.86 and 52.14 on alternate bouts of buying and selling before concluding at 52.02/03. The Bombay Stock Exchange benchmark index, Sensex, fell by 159 points to 16,008.34. Foreign institutional investors withdrew nearly $1.2 billion in 10 straight trading sessions since November 15.

Bonds firm up
Government bonds firmed up on fresh buying by banks and companies.

The 9.15 per cent government security maturing in 2024 rebounded to end at Rs 101.55 from Rs 101.3550, while its yield dipped to 8.94 per cent from 8.97 per cent yesterday. The 8.79 per cent government security maturing in 2021 also finished a tad higher at Rs 99.76 from Rs 99.75, while its yield remained stable at 8.83 per cent previously. The 7.80 per cent government security maturing in 2021 inched up to Rs 93.49 from Rs 93.48, while its yield softened to 8.83 per cent from 8.84 per cent.

Call rate drops
The call rate dropped further on the overnight call money market on Tuesday on excess liquidity in the system and lack of demand from borrowing banks. After moving in a range of 8.70 per cent and 8.50 per cent, the rate closed at 8.50 per cent from 8.65 per cent yesterday.

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First Published: Nov 30 2011 | 12:11 AM IST

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