Snapping the four-day rally, the rupee today weakened on fresh demand for the American currency from banks and importers.

Ending the four-day rally, the rupee on Wednesday closed at 54.49 on high dollar demand and a weak euro.

Intra-day, the domestic currency hit a low of 54.85 on increased dollar demand after touching a high of 54.18 on the Interbank Foreign Exchange Market.

The rupee opened marginally lower at 54.40 from yesterday’s close of 54.37 per dollar. The Indian unit rose consecutively for four days to hit a six-week high against the American dollar on Tuesday.

Market sentiments had improved in the last four days after the government announced tax measures that the general anti-avoidance rules (GAAR) would not be applied retrospectively and that P-notes would remain outside the ambit.

Call Rates and G-Secs

The inter-bank call rates closed steeply lower at 7.05 per cent from a close of 8.00 per cent yesterday.

The overnight rate had opened higher at 8.25 per cent and saw a wide movement in the second session of the day.

The 9.15 per cent government bond maturing in 2024 ended higher at Rs 105.84 (yield of 8.37 per cent) from Rs 105.57 (yield of 8.41 per cent).

The benchmark 8.79 per cent government security that matures in 2021 ended higher higher at Rs 102.93 with a yield of 8.32 per cent. On Tuesday, the bond rates had closed at Rs 102.71 with a yield of 8.35 per cent.

(This article was published on July 4, 2012)
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