The rupee closed weaker at 62.50 against the dollar on increased buying of the American currency by banks and corporates. The Indian unit had closed at 62.08 on Thursday.

On Friday, it opened higher at 61.90/$ and then moved widely in the 61.77-62.55 range intra-day as companies scrambled to collect dollars at lower rates.

On Monday, the Government will release the current account deficit data for the April-June quarter. The numbers will be watched closely as it will indicate if Finance Minister P. Chidambaram can adhere to his promise of keeping the current account deficit at under $70 billion for the full year.

A higher current account deficit puts pressure on the rupee and a lower figure is seen as an important determinant for a stable rupee.

Call rates, bond yields flat

The inter-bank call money rates, the rate at which banks borrow from each other to meet their short-term fund requirement, closed almost flat at 9.45 per cent (9.48 per cent on Thursday).

The 7.16 per cent government security, which matures in 2023, closed a tad higher at Rs 90.01 from previous close of Rs 89.96. Yields were unchanged at 8.71 per cent.

(This article was published on September 27, 2013)
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