Rupee slips on dollar demand

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The rupee declined by 10 paise to close at 53.92 against the dollar on a weaker euro and persistent dollar demand from banks and importers. The domestic unit had closed at 53.82 on Wednesday. On Thursday, it opened marginally lower at 53.85 as demand for the American currency put some pressure on the unit. Lower domestic equity markets further weakened the rupee. After dropping to 53.96, the rupee gained to 53.81 during the day on lower-than expected wholesale price inflation numbers in January, which came at 6.62 per cent. However, a weaker euro and dollar demand continued to weigh on the rupee.

Call rates flat, bonds up

The interbank call rates closed flat from Wednesday’s close of 7.85 per cent. Intra-day, it moved in the 7.70-7.90 per cent range. The 8.15 per cent government bond, which matures in 2022, jumped to Rs 102.15 (7.81 per cent) from its previous close of Rs 101.98 (7.84 per cent).

(This article was published on February 14, 2013)
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