The rupee touched its lowest level in a week on Tuesday after falling for a third consecutive session, as dollar demand from largely oil importers and broad dollar short-covering offset inflows tied to the gains in domestic shares.
The partially convertible rupee closed at 52.72-73 per dollar versus its previous close of 52.64-65, after hitting a session low at 52.83, its lowest since October 1.
Bond yields at two-month low
India’s 10-year bonds rose, pushing yields to a two-month low, amid optimism the central bank would ease monetary policy to support the government’s effort to spur economic growth.
In the past month, Prime Minister Manmohan Singh unveiled policy changes including allowing more foreign investment in retailing, airlines and insurance to attract investments.
The nation’s economy grew 5.5 per cent in the three months ended June, government data show. Growth was 5.3 percent in the previous quarter, the least since 2009.
Call rate ends lower
The overnight call money rate ended lower at 8.05 per cent from 8.10 per cent previously, it moved in a range of 8.10 per cent and 7.90 per cent.