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The rupee slipped to a near 10-month low of 62.34 against the dollar as heavy capital outflows weighed on the unit due to dampened global economic sentiments.
The domestic unit breached the 62 level on Wednesday to close at 62.02 per dollar.
Weaker Chinese shares, lower international oil prices and political uncertainty in Greece dampened the sentiments in the domestic equity markets, where BSE-benchmark Sensex plunged 229 points to end at 27,602.
On Thursday, the unit opened at 62.15 at the Interbank Foreign Exchange market. After gaining marginally to 62.12, the rupee dropped to 62.35 on heavy capital outflows and demand for the American dollar by oil importing companies.
The rupee is likely to trade with a downward bias due to a stronger dollar amid global macro concerns. Market investors will also watch out for data on inflation and trade deficit, due to be announced later this month.
Call Rate eases; G-secs soften
The overnight call money rates, the interest rates at which banks borrow from each other to overcome liquidity mismatches, ended weaker at 7.90 per cent from Wednesday’s close of 8 per cent. Intra-day, it moved in the range of 7 per cent and 8.25 per cent.
The 10-year benchmark government security (8.40 per cent G-Sec, maturing in 2024) yield softened to 7.86 per cent from the previous close of 7.90 per cent. The price rose to Rs 103.54 from Rs 103.26. Bond yields and prices move in the opposite direction.
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