The rupee on Tuesday touched a two-week low of 56.13 but recovered some of the losses to close three paise down at 55.96 against the dollar, amid foreign fund outflows and demand of the US currency from importers.
After closing at 55.93 yesterday, the rupee on Tuesday resumed slightly better at 55.9 at the Interbank Foreign Exchange (Forex) market. However, the rupee soon touched a low of 56.13 on erratic movements in stocks and dollar selling by exporters. Brokers said dollar demand from importers rose after crude oil in Asia fell below the $83 mark. But, a late rise in domestic equities, with the Sensex rising 154 points and a weak dollar trend in foreign markets, helped it to rebound to touch 55.88 before concluding at 55.96, a fall of three paise over yesterday’s close. After injecting $393.64 million in eight days since June 6 by foreign funds in equities, on Tuesday FIIs sold shares worth $16.7 million by NSE data.
Bonds recover on fresh buying
Government securities (G-sec) recovered smartly on fresh demand from banks and companies. The 8.79 per cent G-sec maturing in 2021 rose to Rs 102.56 from Rs 102.30 yesterday, while its yield dropped to 8.39 per cent from 8.43 per cent. The 8.15 per cent G-sec maturing in 2022 climbed to Rs 100.2625 from Rs 99.88, while its yield fell to 8.11 per cent from 8.17 per cent. The 8.19 per cent G-sec maturing in 2020 firmed up to Rs 99.53 from Rs 99.43, while its yield eased to 8.27 per cent from 8.29 per cent.
Call rates decline
Call rates declined due to lack of demand from borrowing banks amid ample liquidity in the banking system. The rate ended lower at eight per cent from yesterday’s close of 8.15 per cent, moving in a range of 8.35 per cent and eight per cent.
