Our Bureau
The rupee ended at 54.22 against the dollar as demand from oil importers weighed heavily on the Indian unit.
Oil importers rushed to cover for their requirements as brent crude prices softened a little to $117.59 a barrel from the highs of $119 a barrel seen earlier in the week.
Also, a weak euro amid recessionary trends in several euro-zone economies put downward pressure on the Indian unit.
“The rupee’s downward movement was sparked by oil-related demand. Currency markets are looking for signals from the budget and there is more risk aversion now globally,” a dealer with a public sector bank informed.
The local unit, which opened at 53.91, has depreciated 1.32 per cent since last Friday’s close of 53.51.
Some countries like Japan have initiated measures that have de-valued their currencies. This, according to leaders, will help making exports competitive while it has sparked fears in many emerging economies that such a move will erode their foreign exchange reserves.
The currency market traders will also be looking at the on-going G-20 meeting in Moscow to address the currency valuation impasse.
A likelihood of a yawning gap in the current account data for the third quarter and the current fiscal is likely to keep the rupee pressurised.
Call rates, G- Secs
The interbank call money rates closed lower at 7.80 per cent from previous close of 7.85 per cent. Call money rates are indicative of inter bank borrowing to meet their short-term requirements. A lower rate indicates higher liquidity in the financial system.
The 8.15 per cent government security, which matures in 2022, closed lower at Rs 102.06 (yield: 7.83 per cent) from previous close of Rs a02.15 (yield: 7.81 per cent).