The rupee on Tuesday closed weaker at 53.73 against the dollar on persistent dollar demand from importers.

The Indian unit had opened higher at 53.38 from its previous close of 53.47 due to firm domestic equity markets and euro’s gains against the American currency overseas.

However, month-end dollar demand by oil and gold importers and weaker domestic equity shares kept the rupee under pressure. Intra-day, it moved by 47 paise in the 53.36 to 53.83 range.

The rupee is likely to stay lower on demand for dollars at month-end. During the week, the foreign exchange market will remain closed on Wednesday and Friday due to bank holidays. This will push forward the dollar purchases by banks and importers.

The Reserve Bank of India is likely to intervene in extreme volatility of the currency, the Deputy Governor H R Khan had said last week.

Call Rates and G-Secs

The overnight call money rates ended flat at 8.10 per cent from Monday’s close. Intra-day, it moved in the range of 7.95 to 8.10 per cent.

The 10-year benchmark 8.15 per cent government security, which matures in 2022, closed a tad softer at 100.08 from Monday's close of Rs 100.10, while the yields remained almost unchanged at 8.13 per cent.

(This article was published on October 23, 2012)
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