The rupee on Tuesday trimmed early gains ending weaker at 55.66 against the dollar from Monday’s close of 55.53 due to weaker Asian markets and dollar demand from importers.

The Indian unit, which had opened higher at 55.40 per US dollar on a stronger euro and stimulus hopes from the US and European central bank, touched an intra-day high of 55.40 and later hit a low of 55.70 in the second session.

Dollar demand from oil companies and no major dollar selling weakened the rupee, said a dealer.

The euro had gained against the dollar overseas ahead of the European Central Bank meeting on Thursday where fresh measures to battle the Euro Zone debt crisis are likely to be announced. However, with higher expectations, there is some scope of disappointment anticipated by the market.

Call rates and G-Secs

The overnight call money market closed lower at 7.95 per cent from Monday’s close of 8 per cent.

The 10-year benchmark 8.15 per cent government security climbed slightly higher at Rs 99.57 from its previous close of Rs 99.54 on Monday, while the yields remained flat at 8.21 per cent.

Beena.parmar@thehindu.co.in

(This article was published on September 4, 2012)
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