The rupee closed weaker at 55.50 against the dollar on increased demand from oil importers.

The end of the two-day bank strike increased the dollar demand as currency trading volumes were suppressed for most state-run banks during the strike.

The Indian unit opened lower at 55.35 from Thursday’s close of 55.26 after RBI maintained its hawkish stance on key policy rates.

Further, the US Federal Reserve did not give clear signals of any stimulus measures and manufacturing surveys from Europe and China pointed to a bleak outlook.

The rupee will be strained for the rest of August as month-end demand from oil importers will add to the pressure on the local currency.

Call rate slips; bonds up

The overnight call rates closed lower at 7.95 per cent from previous close of 8.10 per cent. The rates moved between 7.25 per cent and 8.05 per cent.

The 10-year benchmark 8.15 per cent government security maturing in 2022 closed higher at Rs 99.59 (yield: 8.20 per cent) from its previous close of Rs 99.46 (yield: 8.22 per cent) on Thursday.

satyanarayan.iyer@thehindu.co.in

(This article was published on August 24, 2012)
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