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Sharp capital outflows from the domestic equity market towards the end of the trading session led the rupee to fall to 62.31 against the dollar. The domestic currency had closed at 62.22 on Friday. The currency resumed higher at 62.16 on Monday with stable inflows ahead of the Union Budget due on Saturday. “This week traders are likely to adjust positions as per the likely government announcements in the railway budget (due on February 26) and the Union Budget,” said a public sector bank dealer. A sharp fall in the BSE-benchmark index of over 250 points (0.88 per cent) over the previous close to end weaker at 28,975, weighed on the rupee which declined to 62.31 per dollar.
Bonds harden, call rates end flat
The 10-year benchmark 8.40 per cent government security maturing in 2024 hardened to 7.70 per cent from Friday’s close of 7.69 per cent. The prices ended a tad lower at ₹104.61 from ₹104.66. Bond prices and yields move in the opposite direction. The overnight call money rates, rates at which banks borrow from each other due to liquidity mismatches, ended at 8 per cent. Intra-day, it moved in the range of 7.45 per cent and 8.25 per cent.
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