Forex

Rupee closes weaker at 55.45 as dollar demand weighs

Our Bureau Mumbai | Updated on September 10, 2012

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The rupee lost steam in the second half of the trading session to close weaker at 55.45 against the dollar as demand for the American currency from oil importers offset gains made because of a strong euro.

The local unit opened stronger at 55.27 for the third day in a row on stronger Asian shares and persistent dollar selling by exporters and foreign banks. It had closed at 55.40 against the American currency on Friday.

In addition, weak US employment data raised the hopes of quantitative easing by the US Federal Reserve. Positive domestic equity markets also supported the rupee.

Liquidity levels have been in the RBI’s comfort zone, said Subir Gokarn, Deputy Governor of the RBI.

Call rates and G-secs

The overnight call money market closed higher at 8.10 per cent against its previous close of 7.50 per cent on Friday.

The 10-year benchmark 8.15 per cent government security closed higher at Rs 99.80 (yield: 8.17 per cent) from its previous close of Rs 99.65 (yield: 8.20 per cent) on Friday.

satyanarayan.Iyer@thehindu.co.in

Beena.parmar@thehindu.co.in

Published on September 10, 2012

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