The rupee was trading weak by 17 paise at 62.32 against the dollar at 4.06 p.m. local time.

The domestic unit opened weak by 25 paise at 62.40 per dollar against the previous close of 62.15 due to month-end dollar demand from importers.

The rupee ended on a strong note on Wednesday reinforced by gains in the euro.

However, according to Abhishek Goenka, Founder and CEO of India Forex Advisors, gains remained under check as month-end dollar demand from oil companies is seen slowly returning to the market.

Going ahead, the special FCNR (B) currency swap window, which was opened by RBI in August, will expire on November 30, and is likely to limit any sharp upside in the Indian rupee. This window has attracted about $25 billion so far.

On late Tuesday evening, a survey revealed that consumer confidence index in the US dipped as more Americans remained uncertain about job prospects. Uncertainty prevailed in the US about the $85-billion-a-month fiscal stimulus.

Call rates, bond yields

The overnight call money rate, the rate at which banks borrow short-term funds from each other, opened higher at 8.70 per cent from the previous close of 8.50 per cent.

Yield on the 10-year benchmark government security (7.16 per cent maturing in 2023) softened to 8.99 per cent from the previous close of 8.99 per cent. Prices remained flat from the previous close of Rs 88.45.

deepa.nair@thehindu.co.in

(This article was published on November 28, 2013)
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