The rupee ended slightly higher at 53.82 as the dollar index weakened against world’s major currencies. The local unit had closed at 53.85 to a dollar on Tuesday.
The weak trade data, which showed India’s trade deficit at $20 billion, did not have any immediate impact on the Indian unit. However, a higher trade deficit data for the months of October, November and December points at a widening current account deficit for the third-quarter of the current fiscal. This could exert a significant downside pressure on the rupee. On Tuesday, the rupee had breached the 54-level mark and touched a low of 54.07 after weak industrial output data cast doubts on faster recovery of the Indian economy. Brent crude, which is used by oil companies to make petrol, diesel and kerosene, turned costlier on the international exchanges. Therefore, oil importers might rush to cover for their imports, thereby exerting downward pressure on the rupee.
Call, bonds rates up
The interbank call rates closed higher at 7.85 per cent from the previous close of 7.75 per cent. The 8.15 per cent government security, which matures in 2022, closed higher at Rs 101.98 (yield: 7.84 per cent) from Tuesday’s close of Rs 101.82 (yield: 7.86 per cent).
satyanarayan.iyer@thehindu.co.in
Keywords: Rupee, dollar, euro, Brent crude, oil importers, industrial output data, Indian economy, call rates, government security, forex market, equity market,
Comments:
kya diya bujhne ke pahle jor se timtima raha hai? it should not be so.
We all yes every Indian/NRI should try to keep this lamp burning
brightly and to keep the flag of Inclusive Indian economy high.We should
try to use cheaper and indigenous substitutes of any thing needed
foreign exchange like oil,bullion, tech stuffs, foreign tours , foreign
grown food. Re exports ,export, capital goods import foreign companies
working on Indian soil are welcome.Let every tehsil of india have
everything in next 5 years. Indiaaaaa-----india.
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