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Snapping three day gains, the rupee today fell 37 paise to close at a more than three-week low at 62.16 against the dollar on month-end demand for the American currency from importers and banks.
The rupee had closed at 61.79 per dollar on Tuesday.
The domestic unit opened weaker at 61.85 a dollar and declined 31 paise thereafter to close at a day’s low of 62.16. Low volumes in the trading sessions limited movement in the rupee.
A dealer with a public sector bank said, “Less capital inflows on account of the Christmas holidays also weighed on the rupee.”
Meanwhile, BSE-benchmark Sensex ended higher by 41.88 points (0.20 per cent) at 21,074.59 points. According to Reuters, foreign funds have bought a total of $3.3 billion in debt and equities so far in December.
According to analysts, the Indian rupee is likely to remain in the range of 61.50 to 63 per dollar in the short term.
Call rates, G-Secs
The inter-bank call money rate, the rate at which banks borrow short-term funds from each other, closed a tad weaker at 8.65 per cent against the previous close of 8.70 per cent.
The widely traded 8.83 per cent government security, which matures in 2023, closed weaker at Rs 99.60 from the Tuesday’s close of Rs 99.75. Yields on the security hardened to 8.89 per cent from 8.86 per cent. Bond prices and yields move in the opposite direction.
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