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The rupee today slipped by 32 paise to close at 55.74 against the US dollar on international rating agency Standard and Poor’s (S&P’s) warning of India risking a sovereign downgrade. In the highly volatile currency markets, the rupee moved 73 paise in the intra day trade touching a high of 55.08 and a low of 55.81 during the day.
S&P’s warning that India will lose place in the investment grade rating, comes in less than two months after cutting its rating outlook for the country.
If done so, India will be the first of the BRICS economies to lose the status. India currently stands on the lowest investment grade rating of ‘BBB-’.
The Indian unit had gained 25 paise in the morning trades on strong Asian markets and Euro zone agreeing to lend 100 billion euros to Spain.
The rupee had lost 48 paise to close at 55.42 against the dollar on Friday.
Call Rates and G-Secs
The call money rates ended slightly lower at 8.10 per cent. The call rates opened flat at 8.20 per cent after touching a low of 8 per cent in the day’s trade.
The benchmark 8.79 per cent government bond maturing in 2021 closed trading at Rs 102.95 with a yield of 8.32 per cent. It touched a high of Rs 103.05 for the day. It closed at Rs 102.78 on Friday.
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