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The rupee ended 15 paise weaker at 59.67 against the dollar due to capital outflows.
The Finance Ministry had indicated that it will announce some measures to boost exports after looking at the first quarter export figures.
This announcement provided a boost to the rupee on Tuesday as it opened higher at 59.44 compared with the previous close of 59.52 a dollar. The domestic unit further appreciated to 59.18 per dollar on the back inflows from foreign institutional investors into the domestic equity market.
“However, a weaker euro and dollar demand from large foreign banks weighed on the rupee. In addition, a weaker equity market due to unwinding of investments by FIIs weakened the rupee,” said a dealer with a public sector bank. Intra-day, the Indian currency fell to 59.71 in the afternoon trades.
Meanwhile, Sensex ended down 113 points (0.58 per cent) at 19,464 points.
According to the dealer, government measures to boost exports might strengthen the rupee. “It is likely to trade around 58.50 to 59.50 levels this week,” he said.
Call Rates and G-Secs
The inter-bank call money rates ended at seven per cent. Intra-day, it moved in the 6.90 to 7.30 per cent range. The call money market was closed on Monday because of the Reserve Bank’s annual account closing.
The benchmark 7.16 government security, which matures in 2023, closed marginally lower at Rs 97.89 from its previous close of Rs 97.95. Yields hardened a tad to 7.46 per cent from 7.45 per cent.
The 8.15 per cent G-Sec, which matures in 2023, closed lower at Rs 103.22 from Rs 103.30, while yields hardened to 7.64 per cent from 7.63 per cent.
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