The rupee fell from its three-and-a-half week high to close at 53.28 against the dollar on the back of weaker domestic equity markets and lower gold prices.

The Indian unit had opened stronger at 53.0 from Friday’s close of 53.21 per dollar on stronger Asian markets and dollar weakness against other currencies.

While the rupee closed, the actively traded gold contract for April delivery was trading lower by 0.07 per cent lower on the Multi Commodity Exchange.

The rupee breached the 52-mark to touch an intra-day high of 52.91 on heavy inflows from a state-run power finance firm. However, the gains were pared on a stronger dollar and some dollar demand and a weaker euro leading the rupee to touch an intra-day low of 53.32 per dollar.

The euro had retreated from its 14-month high against the dollar further strengthening the American currency.

The Indian currency is likely to gain on stronger inflows expected from the upcoming share sales of MMTC, SAIL among others in February and March.

However, analysts see no further room for appreciation in the Indian currency following looming concerns of current account and fiscal deficit.

Call Rates up; G-Secs eases

The inter-bank call money markets closed marginally higher at its opening trade of 7.85 per cent from a close of 7.80 per cent on Friday. Intra-day, the call rates moved in the 7 to 7.85 per cent range.

The 8.15 per cent government security, which matures in 2022, ended lower at Rs 101.37 (7.93 per cent) from Rs 101.54 (yield: 7.91 per cent).

(This article was published on February 4, 2013)
XThese are links to The Hindu Business Line suggested by Outbrain, which may or may not be relevant to the other content on this page. You can read Outbrain's privacy and cookie policy here.