The rupee closed lower at 55.21 against the American currency as oil related dollar demand put pressure on the Indian unit.

The local unit opened at 55.08 (previous close: 55.11) as the gains were capped because of uncertainty in the markets over key legislations making their cut in Parliament.

About 25 large and small bills are proposed to be introduced in Parliament in a month-long session.

“The rupee fell despite a weak dollar index which is trading below 81 levels. As Euro is seen recovering and there are increasing hopes that the winter session might provide some positive reforms, we might see minor dips coming in the market, which can be used by the importers to go long.” said Mr. Abhishek Goenka, Founder & CEO, India Forex Advisors.

Also, uncertainty in Europe over a bailout package for Greece has kept the rupee below the 55 levels for the past few days.

Call rates, G-Secs

The interbank call rates closed slightly higher at 8.10 per cent from previous close of 8 per cent on Wednesday.

The 8.15 per cent government security that matures in 2022, ended lower at Rs 99.49 (yield: 8.22 per cent) from Wednesday’s close of Rs 99.61 (yields: 8.20 per cent).

(This article was published on November 22, 2012)
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