The rupee was trading weak by 17 paise at 60.24 against the dollar at 3.27 p.m. local time.

The rupee fell 28 paise to 60.35 against the US dollar in the opening trade today due to demand for the American currency from importers and a weak Asian currency and equity market.

Yesterday, the rupee had closed 6 paise higher at 60.07 amid bouts of capital flows and dollar demand.

The domestic currency rose to 60.22 in the early trade amid mild inflows. However, it was trading weak due to persistent demand for dollar from oil importers and banks.

Forex dealers said besides increased demand from importers for the greenback, a lower opening in the domestic equity market and dollar’s gains against the euro overseas also put pressure on the rupee.

The BSE benchmark Sensex fell 150 points (0.66 per cent) at 22,565 points in the morning session.

Call rates, G-secs

Amid high liquidity, the overnight call money rate (the rate at which banks borrow money from each other to overcome short-term liquidity mismatches) was trading higher at 8.15 per cent from its previous close of 7.01 per cent on Thursday.

Yield on the 10-year benchmark 8.83 per cent government security (G-Sec), maturing in 2023, softened a tad to 8.99 per cent from Thursday’s close of 9 per cent. Prices of the security were trading higher at Rs 98.93 from Rs 98.89. Security prices and yields move in opposite directions.

beena.parmar@thehindu.co.in

(This article was published on April 11, 2014)
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