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The rupee continued to trade weak in afternoon trades due to dollar buying by foreign banks and state-run banks. According to currency dealers weakness in the rupee is attributed to negative sentiments in the equity market after the release of the Consumer Price Index (CPI) inflation data yesterday. Dollar demand from oil companies and importers is also putting pressure on the rupee.
At 1:45PM the rupee was trading at Rs 62.08 compared with previous close of Rs 61.83 per dollar. Currency dealers see the Reserve Bank of India (RBI) intervening in the currency market later during the day to arrest the volatility.
Meanwhile, the yield on the 10-year bond 8.83% was trading at 8.89% compared with previous close of 8.85%.
