The rupee fell for the fourth straight day to end at 56.17 against the dollar. Global sentiments continued to take the sheen off the Indian currency.

The local unit opened at 56.26 against the previous close of 56.12.

A host of reasons have contributed to the rupee’s fall this week. The European debt crisis, slowing growth in the US and China, the uncertain monsoons and the Government’s policy inaction have added to the rupee’s woes.

“If the Government introduces policy reforms in multi-brand retail, aviation, insurance and pension, then the rupee might snap back to 51-52 levels,” Mr G. Chokkalingam, Chief Investment Officer, Centrum Wealth Management, said.

If there are no policy reforms, then the effect on the rupee will be disastrous, he added.

Call rates, G-Secs

The interbank call rates closed at 7.95 per cent against the previous close of 8 per cent.

The more widely traded 9.15 per cent Government bond maturing in 2024 closed at Rs 106.43 (yield: 8.30 per cent) compared with the previous close of Rs 106.60 (yield: 8.28 per cent).

The 8.15 per cent bond maturing in 2022 closed at Rs 100.31 (yield: 8.10 per cent) against the previous close of Rs 100.41 (yield: 8.08 per cent).

satyanarayan.iyer@thehindu.co.in

(This article was published on July 25, 2012)
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