The rupee closed weaker at 61.89 against the dollar as the country’s current account deficit (CAD) print for the second quarter showed a higher reading than in the previous quarter.
India’s CAD – a measure of the country’s external vulnerability – rose to 2.1 per cent of GDP in the second quarter from 1.7 per cent in the first quarter.
The Indian currency had closed weaker at 61.84 on Monday.
The currency traded in a narrow range of 61.84 to 61.92 in the day’s trade.
“Widening current account deficit and importers dollar demand hurt the sentiment for rupee,” Suresh Nair, Director, Admisi Forex India Pvt. Ltd wrote in his evening note.
Call Rates and G-secs
The overnight call money rates, rates at which banks borrow from each other for liquidity mismatches, ended higher at 8.25 per cent from the previous close of 8.05 per cent.
The benchmark government security (8.40 per cent G-Sec, maturing in 2040) yield softened to end a tad lower at 7.90 per cent (price closed at Rs 103.30) from the previous close of 7.91 per cent (Rs 103.19). Bond yields and prices move in the opposite direction.
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