Rupee closes weaker at 61.72 on dollar demand from oil importers

Beena Parmar Updated - November 14, 2014 at 06:16 PM.

rupee

Tracking losses in Asian currencies, the rupee today ended 15 paise weaker at 61.72 against the dollar amid dollar demand from oil importers and banks.

The domestic unit opened at 61.61 on Friday, 4 paise weaker from 61.57 at the Interbank Foreign Exchange Market.

Thereafter, the unit continued to decline during the day to 61.83 per dollar on persistent dollar demand from importers and weaker Asian currencies. However, capital inflows into the domestic equity markets limited the fall in the rupee, which recovered to 61.72 per dollar.

The 30-share BSE index Sensex ended at 28,046.66, higher by 106 points (0.38 per cent) over the previous close.

The Wholesale Price Index (WPI)-based inflation for October was at 1.77 per cent, slowest pace since September 2009.

A decline in both consumer and wholesale price inflation has increased market players’ expectations that the Reserve Bank of India (RBI) will cut rates at its next meeting due on 2 December. Though many experts rule out the possibility of a rate cut, a cut is likely to help more inflows into the market.

Call Rates, Bond yields drop marginally

The inter-bank call money rate, the rate at which banks borrow short-term funds from one another, ended a tad lower at 7.75 per cent from the previous close of 7.80 per cent on Thursday.

Yield on the 10-year benchmark 8.40 per cent government security, maturing in 2024, ended a tad lower at 8.21 per cent from 8.22 per cent, while the price of the bond rose marginally to Rs 101.20 from Rs 101.16.

Published on November 14, 2014 12:46