The rupee ended above the 60-mark for the third consecutive day. It shed 8 paise against the dollar to close weaker at 60.22 on Friday against the previous close of 60.14.The domestic unit opened at 60.06 per dollar and touched an intra-day high of 60 and low of 60.58.

The unit had touched an all-time low of 60.76 against the dollar on June 26.

“The rupee was under pressure on account of dollar demand from importers and global factors such as the dollar index which was seen trading above its one month high and in tune with the pressure on emerging market currencies,” said Hariprasad M.P., Head- Treasury, CentrumDirect.

On Thursday, RBI Governor D. Subbarao said the the Reserve Bank did not have a target for the rupee’s exchange rate, and that it uses all tools to manage volatility in the exchange rate. This fuelled fear that the central bank may not intervene to protect the rupee from falling sharply, said dealers.

In addition, a high Current Account Deficit (CAD) continued to weigh on the currency.

Call rates and G-Secs

The inter-bank call money rates closed higher at 6.70 per cent from the previous close of 6.35 per cent.

The benchmark 7.16 per cent government security, which matures in 2023, ended lower at Rs 97.67 from the previous close of Rs 98.24. Yields hardened to 7.49 per cent from the previous close of 7.41 per cent.

deepa.nair@thehindu.co.in

(This article was published on July 5, 2013)
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