Re may depreciate to 63 per dollar by July-end: IIFL

The rupee closed above the crucial 60-to-the-dollar mark on Wednesday for the second time in the last five trading sessions. The Indian unit closed weaker at 60.21 against the dollar due to heavy dollar demand from oil companies and a weaker euro. The rupee opened weaker at 59.88 per dollar as against the previous close of 59.67 on Tuesday. Thereon, it the fell to touch an intraday low of 60.38 on heavy demand for the greenback from oil importers. The rupee had touched an all-time low of 60.76 against the dollar on June 26. “Weak domestic equity markets and a string of resignations by ministers in some European countries strengthened the dollar against other global currencies,” said a dealer with a public sector bank. BSE-benchmark Sensex ended lower by 286 points (1.47 per cent) at 19,178 points at day’s close. Analysts expect the rupee to remain under pressure on account of a stronger dollar amid weak sentiments in the global markets. Further, foreign investors have been paring their investments in the equity and debt markets following the US Fed’s recent announcement regarding slowing of bond purchases towards the year-end.

Call rates weak, G-Secs down

The inter-bank call money rates closed weaker at 6.50 per cent from the previous close of seven per cent. Intra-day, the call money market moved in the 6.30 to 7.30 per cent range. The benchmark 7.16 government security, which matures in 2023, closed lower at Rs 97.63 from Tuesday’s close of Rs 97.89. Yields hardened to 7.50 per cent from 7.46 per cent. The 8.15 per cent G-Sec, which matures in 2022, closed lower at Rs 102.93 from its previous close of Rs 103.22. Yields hardened to 7.68 per cent from 7.64 per cent.

(This article was published on July 3, 2013)
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