The rupee closed weaker at 55.42 against the dollar as sustained demand for the American currency by oil importers added pressure on the Indian currency.

“The dollar demand by oil importers and defence related buying put pressure on the rupee,” a dealer with a public sector bank said.

The domestic unit opened weaker at 55.30 on steady Asian markets. On Wednesday, it had closed stronger at 55.22.

Uncertainty surrounding the US Federal Reserve’s decision on quantitative easing measures to be announced later in the day kept the rupee on tenterhooks. The rupee will likely strengthen tomorrow in case of a favourable outcome from the meet.

Investors will also keenly eye the inflation figures to be announced on Friday.

Call rates and G-Secs

The overnight call money market closed at 8 per cent from yesterday’s close of 8.05 per cent.

The 10-year benchmark 8.15 per cent government bond maturing in 2022 closed at Rs 99.76 (yield: 8.18 per cent) from a close of Rs 99.66 (yield: 8.20 per cent) on Wednesday.

The widely traded 8.33 per cent bond maturing in 2026 closed higher at Rs 100.14 (yield: 8.31 per cent) from Wednesday’s close of Rs 99.89 (yield: 8.34 per cent).

(This article was published on September 13, 2012)
XThese are links to The Hindu Business Line suggested by Outbrain, which may or may not be relevant to the other content on this page. You can read Outbrain's privacy and cookie policy here.