The rupee fell to a two-week low on Thursday, posting a second consecutive decline, hurt by the biggest falls in stocks in six weeks and dollar demand from a large corporate. The weak start to the year comes ahead of key events later this month, including inflation data due mid-month, which will help determine whether the Reserve Bank of India raises interest rates at its policy review on January 28. RBI has made clear it could resume tightening monetary policy after two rate hikes last year even as economic growth slows.
The partially convertible rupee on Thursday closed at 62.26/27 a dollar compared with 61.91/92 on Wednesday. It fell to 62.28 in session, its lowest since December 20.
Bonds end mixed
Government securities (G-secs) ended mixed on bouts of buying and selling. The 8.83 per cent G-sec maturing in 2027 moved-up to Rs 99.92 from Rs 99.89 previously, while its yield held stable to 8.84 per cent. The 7.28 per cent G-sec maturing in 2019 surged to Rs 93.01 from Rs 92.97.
Call rates end low
Call rates finished lower at the overnight market due to lack of demand from borrowing banks. The rates ended lower at 6.78 per cent from 7.75 per cent. It moved in a wide range of 8.20 and 6.60 per cent.
