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The rupee closed weaker at 53.02 against the dollar after data showed that the wholesale price index-based inflation has peaked to a 10-month high.
The local unit, which opened weak at 53.04, had closed at 52.81 on Friday.
The higher inflation rate will make it difficult for the Reserve Bank of India to cut policy rates.
Besides, oil related dollar demand also added pressure on the Indian unit.
An appreciating dollar against the world’s major currencies can also push the rupee downwards in the forthcoming days. Much of this will depend on the developments in the western world, particularly in Spain and Greece.
Call rates, G-Secs
The interbank call rates closed slightly higher at 8.07 per cent from Friday’s close of 8.05 per cent.
The 8.15 per cent government security, maturing in 2022, closed unchanged from Friday’s close at Rs 99.86 (yield: 8.17 per cent).
satyanarayan.iyer@thehindu.co.in
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