The rupee ended 37 paise weaker at 62.22 against the dollar on heavy dollar demand from oil importers amid weakness in emerging Asian currencies. The domestic unit had ended stronger at 61.85 on Monday after the Finance Minister’s statement in the Interim Budget that India will further reduce the twin deficits (fiscal and current account deficit) in the next financial year. On Tuesday, the unit opened weaker at 62.02 per dollar on fresh demand for the American currency from oil importers (to pay oil bills) and a lower opening in the domestic equity market. The rupee continued to slide further to 62.30 at the Interbank Foreign Exchange market.
Call rates end higher
The inter-bank call money rate, the rate at which banks borrow money from each other to meet short-term requirements, closed sharply higher at 9 per cent from Friday’s close of 7.05 per cent. Yield on the 10-year benchmark 8.83 per cent Government security, maturing in 2023, softened to 8.76 per cent from 8.80 per cent. Bond prices rose to ₹100.38 from ₹100.14. Bond prices and yields move in the opposite direction.