The rupee tumbled in the last session to closed lower at 54.58 as weak domestic equity markets had a rub-off effect on the Indian unit.

Foreign institutional investors (FIIs) pulled out money from the markets taking the rupee down.

“Since last couple of days, the FIIs have been the net sellers, which are a negative sign for the markets as well as for rupee. This week’s domestic data will be very important as it will give direction to the rupee,” said Abhishek Goenka, Founder & CEO, India Forex Advisors.

The rupee opened stronger at 54.49 (previous close: 54.57) after Finance Minister, P.Chidambaram, assured India Inc that he will look into reasons behind the stalled projects.

Currency markets will wait for cues from the trade data, which will be made public tomorrow, for likely signals on the direction of current account deficit in the fourth quarter of FY’13.

Call rates, G-Sec

The interbank call money rates closed lower at 7.50 per cent from previous close of 7.70 per cent.

The 8.15 per cent government security, which matures in 2022, closed higher at Rs 101.71 from previous close of Rs 101.52. The yields softened to 7.88 per cent from previous closed of 7.91 per cent.

satyanarayan.iyer@thehindu.co.in

(This article was published on April 9, 2013)
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