Rupee closes higher amid volatility

Our Bureau Mumbai | Updated on March 12, 2018













The rupee closed 11 paise higher at 53.37 on Tuesday, amid volatility due to mild dollar selling and month-end dollar demand. It had closed flat at 53.48 per dollar on Monday.

After opening higher at 53.40 against the dollar on Tuesday, the rupee moved in the range of 53.31 and 53.62 per dollar in its intra-day trade.

“Oil demand and dollar inflow from big corporate kept the currency volatile,” said a chief dealer of nationalised bank.

“The rupee fell mainly driven by outflow of around $ 750-900 million largely by way of Cairn Energy's stake sale in Cairn India. However, after reaching the 53.60 levels, selective buying and dollar inflow supported the rupee,” the dealer added.

Also, traders’ participation is coming down as we have no exit way in the market, a trader said.

Month-end dollar demand for oil and defence sector is likely to put pressure on the rupee this week. Further, if the there are hurdles in the reform measures announced, the rupee could fall to 55 levels, the dealer said.

Call rates flat; G-Secs eases

The overnight call money rates closed flat at 8.05 per cent. Intra-day, the rates moved in the range 7.90 to 8.10 per cent after it opened higher at 8.10 per cent.

The 10-year benchmark 8.15 per cent government bond maturing in 2022 closed lower at Rs 99.86 (yield: 8.17 per cent) from a close of Rs 99.95 (yield: 8.16 per cent) on Monday.

Published on September 25, 2012

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor