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The rupee closed lower at 57.98 against the dollar following higher demand for the American currency from oil importers and weaker Asian currencies. The Indian unit opened lower at 58.10 against the previous close of 57.77. Intra-day, the rupee moved in the range of 57.93 to 58.55 at the Interbank Foreign Exchange Market. The Finance Minister’s comments that new reform measures, including lifting caps on foreign direct investment and changes in locally-produced gas prices, will be in place by the end of June failed to cheer the market. Further, the Sensex plunged 214 points (1.12 per cent) to close at 18,827 points on heavy capital outflows. Dealers will now watch out for the May headline inflation data due on Friday, which is the last crucial data to drive decision on interest rate cut by the Reserve Bank of India on June 17.
Call Rates and G-Secs
The inter-bank call money rates ended slightly higher at 7.30 from their previous close of 7.25 per cent.
The 8.15 per cent government security (G-Sec), which matures in 2022, closed lower at Rs 103.87 from the previous close of Rs104.17. Yields hardened to 7.54 per cent from the previous close of 7.50 per cent.
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