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Snapping the seven-day consecutive winning streak, the rupee ended seven paise lower at 62.33 due to dollar demand from importers and banks weighed on the market.
The rupee ended at 62.26 on Tuesday, the longest (7-day) gain since June 2011.
Wednesday, the Indian unit opened a tad softer at 62.32 and further declined to 62.43 against the greenback dragged by the month-end dollar demand from importers and banks.
However, the US dollar declined against the euro and the yen in Asia with investors reluctant to take strong positions amid a lack of fresh market-moving news, thereby helping some recovery in the rupee, which gained to 62.27 in the second session of trade.
During the day, the rupee moved in a narrow range of 16 paise between 62.27 and 62.43 at the Interbank Foreign Exchange market.
Bonds yields rise and Call Rates fall
The yield on 10-year benchmark 8.40 per cent Government security maturing in 2024, hardened to 7.77 per cent from 7.74. During the day, the yields moved in the range of 7.74 to 7.77 per cent.
The price of the security ended lower at Rs 104.10 from Rs 104.25. The prices and yields of bonds move in opposite direction.
The interbank call money rate, rate at which banks lend to each other to overcome overnight liquidity mismatches, ended lower at 6.90 per cent from a previous close of 7.40 per cent. Intra-day, it moved between 6.50 to 7.60 per cent range.
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