The rupee ended 21 paise weaker at 61.71 against the dollar due to dollar buying from banks and importers and a stronger American currency amid a weaker euro.

Extending Thursday’s losses, the rupee opened weak at 61.94 against the previous close of 61.50 due to appreciation of the American currency against other foreign currencies.

Increased demand for dollar from importers put pressure on the rupee. The rupee strengthened marginally to 61.80 in the afternoon trade after which it gained to 61.70 levels. Intra-day, it moved 26 paise in the 61.95 to 61.71 per dollar range.

Dealers attributed the rupee’s fall to dollar’s gains against the euro overseas but a higher opening in the domestic stock market limited the fall.

The Sensex rose 130 points (0.61 per cent) to a record high of 21,291 points in the morning trade closing at a record high of 21,196.81 points.

“On the Euro zone front, all their economic data, including Germany's consumer climate, retail sales and unemployment rate came out weaker-than-expected making Euro fall to its two-week low against the US dollar,” according to India Forex Advisors.

Call rate eases; G-secs hardens

The overnight call money rate, rate at which banks borrow from each other for their short-term funding requirements, ended sharply lower at 8.30 per cent from Thursday’s close of 8.70 per cent.

Yield on the 10-year benchmark government bond 7.16 per cent 2023, further hardened to 8.70 per cent from its previous close of 8.62 per cent on Thursday. Bond prices closed weaker at Rs 90.15 from Rs 90.59.

Beena.parmar@thehindu.co.in

(This article was published on November 1, 2013)
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