Rupee slumps on equity concerns

Our Bureau Updated - April 04, 2013 at 10:19 PM.

BL05RUPEE

The rupee declined 44 paise to a near one-month low of 54.85 against the dollar due to weaker domestic equity markets and persistent growth concerns.

The Indian unit had closed at 54.43 on Wednesday.

The unit opened lower at 54.50 as equity markets weakened on the back of heavy capital outflows by foreign investors.

BSE benchmark Sensex closed down by 292 points or 1.55 per cent at 18,509.70.

Intra-day, the rupee moved 40 paise in the range of 54.49-54.89 against the dollar on the Interbank Foreign Exchange market.

Analysts said that political uncertainty along with widening current account deficit and growing concerns of poor earnings expectations weighed on the investor sentiments.

Further increased demand from importers for the US currency and a weaker euro added to the pressure on the rupee.

Call drops, bonds rise

The inter-bank call money rates closed at 6.85 per cent from its previous close of 6.75 per cent on Wednesday. The call money market moved in the 6.50-7.55 per cent range during the day.

The 8.15 per cent government security, which matures in 2022, ended almost flat at Rs 101.19 from Wednesday’s close of Rs 101.18, while yields remained unchanged at 7.96 per cent.

>Beena.parmar@thehindu.co.in

Published on April 4, 2013 04:40