The rupee today touched a two-week low of 56.13 but recovered some of the losses to close three paise down at 55.96 against the dollar amid foreign fund outflows and demand for the US currency from importers.

After closing at 55.93 yesterday, the rupee today resumed slightly better at 55.90 at the forex market. However, rupee soon touched a low of 56.13 on erratic movements in stocks and dollar selling by exporters.

Brokers said dollar demand from importers rose after crude oil in Asia fell below the $83 mark.

But, a late rise in domestic equities with Sensex rising 154 points and weak dollar trend in overseas markets helped rupee to rebound to touch 55.88 before concluding at 55.96, a fall of three paise over yesterday’s close.

After injecting $393.64 million in straight eight days since June 6 by foreign funds in equities, today FIIs sold shares worth around $16.7 million as per the NSE data.

Talking about the rupee, the RBI Governor Dr D Subbarao today said: “Rupee depreciation from March till today is due to both global and domestic factors. Exports not going up while increase in imports and gold import are some factors behind such depreciation.”

Call rates, G-secs

The call money rates were trading at 8.3 per cent from 8.15 per cent close on Monday. It moved in the range of 8.2 to 8.35 per cent in the afternoon trade.

The 8.79 per cent government security maturing in 2021 was trading higher at Rs 102.52 with a yield of 8.39 per cent. The bond rates had closed at Rs 102.30 at a yield of 8.41 per cent yesterday.

(This article was published on June 19, 2012)
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