After touching a one month-high for the second consecutive day, the rupee ended marginally lower at 60.14 against the dollar amid sharp fall in domestic equity market and stronger Asian currencies.

The domestic currency had ended 11 paise higher at 60.11 on Tuesday.

On Wednesday, it opened higher at 60.02 on the back of higher Asian currencies and capital flows. The sentiments helped the rupee breach the 59 levels and rise to 59.96 at the Interbank foreign exchange market.

However, the rupee declined to 60.15 per dollar in the late afternoon trading session.

The equity market continued to slide during the day with BSE-benchmark Sensex ending at 22,323.90 points, sharply weaker by 184.5 points (0.82 per cent) over its previous close. The NSE-Nifty fell nearly 1 per cent to of 6,652.55 points, its lowest close in nearly 1-1/2 months.

Intraday, the rupee movement against the dollar was in a narrow range of 19 paise.

Amid cautious stand by market participants, investors are waiting for the election results due on May 16.

Call rates higher; bond yields harden

Amid high volatility, the overnight call money rate (the rate at which banks borrow money from each other to overcome short-term liquidity mismatches) closed 20 bps higher at 7.25 per cent as against previous close of 7.05 per cent on Monday. The call money market moved in a wide range of 7.25 to 8.05 per cent.

The yield on 10-year benchmark 8.83 per cent bond, maturing in 2023, hardened to 8.78 per cent from Monday’s 8.73 per cent. Bond prices dropped to Rs 100.31 from Rs 100.59. Bond yields and prices move in opposite directions.

>beena.parmar@thehindu.co.in

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