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The rupee fell on Tuesday with traders awaiting the outcome of the central bank's policy review, as well as the Federal Reserve's decision on tapering monetary stimulus. The Reserve Bank of India (RBI) is widely expected to raise its key repo rate by 25 basis points to eight per cent on Wednesday, its third such hike in four months after recent data showed both wholesale and retail inflation at multi-month highs.
The partially convertible rupee closed at 62.01/02 a dollar compared with 61.74/75 on Monday, a fourth day of losses out of five.
Bonds turn bearish
Government securities (G-secs) turned bearish on selling pressure from banks and companies. The 8.83 per cent G-sec maturing in 2023 dropped to Rs 99.44 from Rs 99.76 previously, while its yield climbed to 8.91 per cent from 8.87 per cent.
Call rates end higher
Call money rates ended higher at the overnight market due to good demand from borrowing banks.
The rates ended higher at 8.75 per cent from Monday's 7.75 per cent
