Surrendering early trade gains, the rupee closed the day five paise lower at 60.65 against the dollar on sudden demand for the US currency from importers, mainly oil refiners.
Weakness in local stocks also weighed on the rupee, while continued capital inflows and lower dollar overseas limited the rupee fall to a major extent, a forex dealer said.
The domestic unit commenced slightly lower at 60.62 a dollar from the last close of 60.60. It touched day's low of 60.76 on initial hesitancy in local stocks amid heavy month-end dollar demand from importers, mainly oil refiners.
It recovered to 60.43 before before settling the day at 60.65, a fall of five paise from its previous close. Last Friday, it had shot up by 47 paise or 0.77 per cent.
Government securities (G-sec) rose on good buying support from banks and corporates and the overnight call money rates remained higher due to sustained demand from borrowing banks.
The 8.83 per cent government security maturing in 2023 climbed to Rs 99.8425 from Rs 99.65, while its yield fell to 8.85 per cent from 8.88 per cent.
The 8.28 per cent government security maturing in 2027 advanced to Rs 93.3450 from Rs 93.1825, while its yield moved down to 9.15 per cent from 9.17 per cent. The 8.24 per cent government security maturing in 2027 also gained to Rs 93.1750 from Rs 93.08, while its yield eased to 9.15 per cent from 9.17 per cent.
The 8.35 per cent government security maturing in 2022, the 7.28 per cent government security maturing in 2019 and the 7.16 per cent government security maturing in 2023 were also quoted higher at Rs 96.32, Rs 93.7250 and Rs 87.95, respectively. The overnight call money rate finished higher at 8.70 per cent from 8.50 per cent previously and it moved in a range of 8.95 per cent and 8.50 per cent.
The Reserve Bank of India, under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 216.44 billion in 57-bids at the 1-day repo auction at a fixed rate of 8.00 per cent today morning, and sold securities worth Rs 71.90 billion from 16-bids at the 3-days reverse repo auction at a fixed rate of 7.00 per cent as on evening of April 25th.
