The rupee snapped a three-day gain on speculation that a rally in oil prices would spur inflation and threaten efforts to boost economic growth. Crude oil for April delivery traded at $108.55 a barrel in New York and has gained 10 per cent this month. Wholesale prices rose 6.55 per cent in January, compared to a year earlier. It stood at 7.47 per cent in December, official data show. The current account deficit would widen to three per cent of gross domestic product in the year ending March 31, C Rangarajan, chairman of the Prime Minister’s Economic Advisory Council, said last week. That compares with 2.6 per cent in the previous year. The rupee declined 0.6 per cent to 49.23 per dollar in Mumbai, according to data compiled by Bloomberg.
Bonds end mixed
Government securities (G-Secs) ended narrowly mixed on alternate bouts of buying and selling. The 9.15 per cent G-Sec maturing in 2024 recouped to Rs 106.49 from Rs 106.40 last weekend, while its yield ended a bit lower at 8.31 per cent from 8.32 per cent. The 8.19 per cent G-Sec maturing in 2020 improved to Rs 99.41 from Rs 99.38, while its yield eased to 8.29 per cent from 8.30 per cent.
Call rate recovers sharply
The call rate recovered sharply today on lack of liquidity in the system and good demand from banks. The overnight call money rate moved in a range of 9.00 per cent and 8.75 per cent, before closing higher at 9.00 per cent.