The rupee ended almost flat 62.08 against the dollar amid thin volume of trades and persistently cautious investor participation. The Indian unit had closed at a one-week high of 62.07 on Wednesday.

The domestic unit opened 13 paise weaker at 62.20 per dollar on the back of dollar demand from importers. Domestic equity market Sensex ended marginally lower by 16 points (0.08 per cent) at 20,713.37 points. The rupee further declined a tad to 62.24 against the greenback. However, dollar selling by investors limited its impact on the rupee.

Intra-day, it moved in a narrow range of 62.24 to 61.97 per dollar at the Interbank Foreign Exchange market. According to traders, the rupee is likely to remain range-bound in the 61.50 to 62.50 level this week.

Market players are also maintaining a cautious stance ahead of the inflation data, due next week. The inflation numbers, which are expected to ease, will be watched out for further cues on determining interest rate decision by the Reserve Bank of India on January 28.

Call rates, G-Sec

The inter-bank call money rate, the rate at which banks borrow short-term money from each other, ended weaker at 8.30 per cent from a close of 8.75 per cent on Wednesday.

The yield on benchmark 8.83 per cent government bond, maturing in 2023, remained almost flat at 8.79 per cent from previous close of 8.80 per cent. Prices ended higher at Rs 100.24 from Rs 100.16.

According to agency reports, government bonds rose as investors were assuaged by comments from a Reserve Bank of India deputy governor that a proposed debt switch may happen only in the next fiscal year starting April.

>Beena.parmar@thehindu.co.in

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