Strong demand for dollar from oil importers dragged the rupee down to 54.77 at close on Monday. The rupee opened slightly up at 54.25 as hopes of key legislations making their cut in Parliament’s winter session had buoyed the market sentiment. Manufacturing output, excluding utilities, accelerated to a five-month high of 53.7 in November, according to HSBC Purchasing Manager’s Index (PMI). This, however, failed to cheer currency market participants. The local unit had closed stronger at 54.28 on Friday, even after India’s GDP growth slowed to 5.3 per cent in the second quarter of the current fiscal. FII inflows in the Indian equity market have topped Rs 1 lakh crore, so far, this year. The currency market will be watchful of developments in Parliament over the whole of this week. The Parliament is scheduled to discuss and vote on the contentious policy of FDI in multi-brand retail on December 4 and 5.

Call Rates, G-Secs

The interbank call money rates closed flat from Friday’s close of 8 per cent. The 8.15 per cent government security, maturing in 2022, closed almost flat at Rs 99.84 against Friday’s close of Rs 99.83. Yields remained un-changed at 8.17 per cent.

(This article was published on December 3, 2012)
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