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The rupee appreciated sharply to 57.53 against the dollar on Friday, on the back of slowing wholesale price index-based inflation and hopes of a policy rate cut on Monday. The Indian unit, which closed at 57.98 on Thursday, opened at 57.78. Wholesale price index-based inflation slowed for the fourth straight month to 4.7 per cent in May. This was less than the 4.87 per cent estimated by most analysts. However, food inflation accelerated to 8.5 per cent in May from 6.08 per cent in April. The Indian unit has depreciated 3.4 per cent so far this month. In the week ahead, RBI’s mid-quarter monetary policy and global developments will set the tone for the currency markets. However, the rupee remains vulnerable to capital outflows and high current account deficit.
Call rates, G-Sec
The inter-bank call money rates closed lower at 7.15 per cent from previous close of 7.30 per cent. The 8.15 per cent government security, which matures in 2022, closed higher at Rs 103.98 from Rs 103.87. Yields slipped a tad to 7.53 per cent from previous close of 7.54 per cent
satyanarayan.iyer@thehindu.co.in
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