Rupee closes lower at 59.29

The rupee ended 10 paise weaker against the dollar at 59.29, tracking weak Asian currencies and bouts of demand for the American currency from importers and banks. The domestic unit had closed flat at 59.19 on Monday.

BSE-benchmark Sensex ended almost flat at 25,583.69 points, a meagre 3.5 points higher over the previous close.

“Dollar demand from importers and banks kept the rupee weaker during the day,” dealers said.

The rupee nudged up to 59.15 per dollar on mild capital inflows into the domestic equity market. However, the dollar held steady against the Asian currencies pulling the rupee down to 59.33 at the Interbank Foreign Exchange market.

The Indian currency is likely to trade in the range of 58 to 60 per dollar range in the near term.

Call Rates and Bond rates

The overnight call money rate (the rate at which banks borrow money from each other to overcome short-term liquidity mismatches) finished lower at 7.00 per cent from yesterday’s level of 7.95 per cent. It moved in range of 8.50 per cent and 7.00 per cent.

The government bond (G-Sec) prices dropped further on sustained selling from banks and corporates and the overnight call money rate also finished lower due to lack of demand from borrowing banks amid ample liquidity in the banking system.

The 8.83 per cent 10-year benchmark bond maturing in 2023 fell to Rs 101.70 from Rs 101.80, while its yield edged-up to 8.56 per cent from 8.55 previously.

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