The rupee lost 42 paise from the previous close to end at 53.84 against the dollar due to strong demand for the American currency from different market players and heavy outflow of dollars. The domestic unit, which closed at 53.42 on Thursday, opened at 53.70 as favourable data on improving US housing market swayed the sentiments in favour of the dollar.

“Since the start of the day’s trade, there was a lot of dollar buying by state-owned banks and oil importers. Heavy gold import also added to the pressure on the Indian unit,” a chief dealer with a public sector bank said.

There was also dollar outflow of about $350 million from an IT major’s stable, which affected the rupee, he said.

The rupee came tantalisingly close to breaching the 54-level mark when it touched the day’s low of 53.98.

Call rate drops; bond rises

The inter-bank call rates closed lower at 7.90 per cent from Thursday’s close of 8.12 per cent. The 8.15 per cent government security, maturing in 2022, closed higher at Rs 100.13 (yield: 8.12 per cent). It had closed at Rs 100.07 (yield: 8.13 per cent) on Thursday.

(This article was published on October 19, 2012)
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