Forex

Rupee closes at 10 month low of 56.18 vs dollar

Our Bureau Mumbai | Updated on May 29, 2013 Published on May 29, 2013

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The rupee ended at a 10-month low of 56.18 against the dollar on Wednesday due to month-end demand for the American currency and weaker domestic equity markets.

Intra-day, the Indian unit touched the lowest at 56.36 per dollar since July 25, 2012. On Wednesday, the rupee opened sharply lower at 56.18 per dollar as against the previous closing level of 55.96 on Tuesday.

The rupee trimmed the initial losses with exporters selling dollars and the Indian currency recovered to 56.09 to the dollar during the day.

“However, a stronger dollar amid persistently heavy month-end dollar demand from importers and banks coupled with weak equities led to rupee’s bearishness,” dealers said.

BSE-benchmark Sensex closed marginally weaker by 13 points (0.07 per cent) at 20,148 points amid mild capital outflows.

“Though there can be an intermediate correction after the recent surge, but the rupee can extend its losses up to 56.80 -57.00 levels in coming days. On the upside, it is pegged at 56.00 - 55.80 levels," said Sugandha Sachdeva, Currency Research, Religare Securities Limited.

Call rates and G-Secs

Amid mild volatility, the interbank call money rates ended flat from its previous close of 7.30 per cent. Intra-day, it moved in the 7.20 to 7.35 per cent range.

The benchmark 8.15 per cent government security, which matures in 2022, ended weaker at Rs 104.94 from Tuesday’s close of Rs 105.30. Yields hardened to 7.38 per cent from 7.35 per cent.

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Published on May 29, 2013
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