Forex

Rupee falls to 62.02 in morning trade

| | Updated on: Dec 17, 2013
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The rupee opened 7 paise lower at 61.81 per dollar on expectations of a rate hike in RBI's mid-quarter monetary policy on Wednesday.

At 10.10 a.m., the rupee was trading at 62.02.

On Monday, the rupee had gained for the first time in four days to close 38 paise higher at 61.74 against the dollar on inflows from foreign banks and corporates despite weak inflation numbers.

November WPI inflation climbed to a 14-month high of 7.52 per cent, increasing chances of a rate hike by the RBI in its monetary policy on Wednesday.

October industrial production had contracted 1.8 per cent year-on-year and November CPI (consumer price index) inflation jumped to 11.24 per cent.

RBI Governor Raghuram Rajan has maintained that the central bank is not comfortable with the current level of inflation and would carefully calibrate its monetary policy.

Call rates, G-Secs

The inter-bank call money rate, the rate at which banks borrow from each other to meet their short-term requirements, opened higher at 8.85 per cent against the previous close of 7.75 per cent.

The 10-year benchmark 7.16 per cent government security (G-secs), which matures in 2023, opened higher at Rs 87.3 from Rs 86.24. Yield on the security softened to 9.20 from 9.21 per cent. Bond prices and their yields move in opposite directions.

>deepa.nair@thehindu.co.in

Published on December 17, 2013

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