Comments
The rupee closed at 55.85 against the dollar on a weak global sentiment.
The Indian unit opened weaker at 55.69 as the US Fed failed to take decisive steps to support the troubled US economy.
The dollar strengthened against other currencies after the US Federal Reserve hinted that there could be further easing action at the next meeting in September.
Investors were also disappointed after the Bank of England and the European Central Bank left its respective monetary policy unchanged.
The rupee will likely react tomorrow to the news from European Central Bank President’s announcement on measures to bring down borrowing costs in Italy and Spain down.
Intra-day, the rupee moved between a high and low of 55.65 and 55.96, respectively
The rupee has been dented by global sentiment as also by policy inaction by the Indian Government. On Wednesday, the domestic unit had closed at 55.47 against the greenback.
A depreciating rupee makes imports expensive and is considered to be a detriment for an import dependent country like India.
Call rates, G-Secs
The interbank call rates closed slightly lower at 8 per cent compared with yesterday’s close of 8.10 per cent.
The 8.15 per cent government bond, which matures in 2022, closed slightly higher at Rs 99.51 (yield: 8.22 per cent) from its previous close of Rs 99.45 (yield: 8.23 per cent).
>satyanarayan.iyer@thehindu.co.in
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.