Forex

Rupee closes lower at 54.76 on weak industrial data

Our Bureau Mumbai | Updated on March 12, 2018

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Paring initial gains, the rupee declined 19 paise to close at 54.76 on weaker industrial data and dollar demand from banks and importers. On Thursday, it had closed at a one-week high of 54.57 per dollar.

On Friday, the Indian unit opened higher by 15 paise at 54.42 on persistent dollar selling by exporters and banks. During the day, it touched a high of 54.42 on a stronger euro and domestic equity markets.

However, November industrial data that contracted to a four-month low by 0.1 per cent dragged the rupee to an intra-day low of 54.83 against the dollar.

“The rupee is expected to remain range bound at about 54.10 to 55.20 levels in the next two weeks ahead,” said Bitupan Majumdar, Analyst, Currency Derivatives, JRG Wealth Management.

Further, investors expect the rupee to gain further on hopes of a rate cut by the Reserve Bank of India in its third quarter monetary policy review on January 29. This will infuse more liquidity into the banking system driving growth revival hopes for the Indian economy.

Call Rates flat; G-Secs firm

The interbank call money rates ended almost flat at 7.90 per cent. The call money market opened higher at 8.10 per cent from Thursday's close of 7.95 per cent.

The 8.15 per cent government security, which matures in 2022, ended slightly higher at Rs 101.84 (yield: 7.86 per cent) from its previous close of Rs 101.78 (yield: 7.87 per cent).

Beena.parmar@thehindu.co.in

Published on January 11, 2013

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