The rupee today closed lower by 31 paise at Rs 53.02/03 against the US currency on fresh month-end dollar demand from importers, amid weakness in the local equity market.
The rupee resumed lower at Rs 52.80/81 per dollar on the interbank foreign exchange, against its previous close of Rs 52.71/72 per dollar. It dropped further to 53.13 per dollar before ending at 53.02/03 per dollar. The domestic currency hovered between Rs 52.76 and Rs 53.13 per dollar during the day.
Month-end dollar demand from importers, mainly oil companies, affected the rupee value against the dollar, a dealer said. Meanwhile, crude oil was up in Asian trade today amid thin trade. In morning trade, New York’s main contract, light sweet crude for February delivery, was trading two cents higher at $99.70 a barrel.
Abhishek Goenka, chief executive, India Forex Advisors said, “The main reason behind the sudden depreciation is dollar demand from oil refiners and local shares being dumped by foreign institutional investors after the Christmas holidays.”
Bonds end mixed
Government bonds closed mixed on alternate bouts of buying and selling. The 8.79 per cent government security maturing in 2021, firmed up to Rs 102.05 from Rs 101.96 yesterday, while its yield softened to 8.48 per cent from 8.49 per cent.
The 7.83 per cent government security maturing in 2018, hardened to Rs 97.06 from Rs 96.90, while its yield moved down to 8.44 per cent from 8.47 per cent.
However, the 9.15 per cent government security maturing in 2024 declined to Rs 104.08 from 104.28, while its yield moved up to 8.62 per cent from 8.59 per cent.
The 7.80 per cent government security maturing in 2021, the 8.97 per cent government security maturing in 2030 and the 8.83 per cent government security maturing in 2041 also quoted lower at Rs 95.61, Rs 102.32 and Rs 100.94, respectively.
Call rate stable
The call rate ended stable at the overnight call money market today on alternate bouts of demand and supply. The rate moved in a range of 9.50 per cent and 8.50 per cent, before concluding stable at its yesterday’s closing level of 8.50 per cent.
