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The rupee ended a tad lower at 60.13 (previous close: 60.11 on Monday) against the dollar on the back of robust demand for the American currency from oil importers.
The currency and bond markets were closed on Tuesday on account of a local holiday.
The Indian unit opened stronger at 59.82, but then fell to as much as 60.16 as dollar demand weighed.
The RBI is actively absorbing flows to slow the rupee’s rise, while simultaneously boosting the foreign reserves stock to ward off bouts of volatility, said Radhika Rao, Economist at DBS Group, in her note.
Call rates and G-Sec yields fall
The overnight call money rate, interest rate at which banks borrow money from each other to overcome short-term liquidity mismatches, closed weaker at 8.15 per cent from its previous close of 9.10 per cent on Monday.
Yield on 10-year benchmark 8.83 per cent government bond, maturing in 2023, fell to 9.03 per cent from Monday’s close of 9.10 per cent. Prices of the security closed higher at Rs 98.69 from Rs 98.27. Bond prices and yields move in the opposite direction.
satyanarayan.iyer@thehindu.co.in
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