Rupee ends at 61.11 a dollar

Our Bureau Mumbai | Updated on August 02, 2013 Published on August 02, 2013


Breaching the 61-levels again, the rupee ended at an all-time low of 61.11 against the dollar after banks persistently bought dollars and expected US jobs data favourable to the American currency.

The domestic unit opened weaker at 60.60 from Thursday's close of 60.44 per dollar due to lower domestic equity market and demand for dollars.

“There was short covering by a few banks which bought dollars. Also, market players anticipated a positive US jobs data which will be announced later on Friday. Both these weighed heavily on the rupee,” said Mohan Shenoi, President – Group Treasury, Kotak Mahindra Bank.

The Indian currency touched an intra-day low of 61.19 per dollar, closer to its earlier historic low of 61.21 on July 8. The rupee depreciated 3.4 per cent this week.

An unchanged interest rate by RBI and weak growth outlook amid widening current account deficit concerns are putting pressure on the Indian currency.

Further, the RBI Governor maintained that the roll back in the liquidity tightening measures announced last week will be in a calibrated manner after the rupee volatility stabilises.

According to Shenoi, the rupee has stopped moving on sentiments and the market players are looking towards government measures to translate into steady capital inflows.

India Forex Advisors, CEO, Abhishek Goenka says the rupee is likely to moderate towards 57 levels in the short term but headed for a bigger fall going forward.

Call rates, bond yields

The inter-bank call money rates, the rates at which banks borrow short-term funds from each other, closed flat from its previous close of 7.50 per cent.

The benchmark 7.16 per cent government security, which matures in 2023, sharply dropped to close at Rs 92.55 from a close of Rs 93.93 on Thursday. Yields on the security hardened to 8.28 per cent from Thursday’s close of 8.06 per cent.

Bond prices and its yields move in the opposite direction.


Published on August 02, 2013
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