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The rupee slipped to more than a two-month low to close at 55.52 against the dollar on persistent dollar buying by oil importers. The Indian unit had opened almost flat at 55.20 from Thursday’s close of 55.21 against the dollar due to a steady euro and flat domestic equity markets.
However, it plunged to a low of 55.59 in intra-day trades on dollar buying by oil importers and no significant development in the Winter Session of the Parliament, putting pressure on the rupee.
“The Reserve Bank of India had intervened to gradually sell dollars around 55.50 levels,” said a chief dealer of a public sector bank.
Experts expect the rupee downside to continue on the back of rising commodity prices, inflation and oil companies’ persistent dollar buying.
Investors and traders will closely watch the developments in the Winter Session of Parliament for further impact on the currency.
Call, bond rates dip
The overnight call money rates ended lower at 8.05 per cent. The rates had opened flat from its previous close of 8.10 per cent on Thursday. Intra-day it moved in the 7.95-8.10 per cent range.
The 10-year benchmark 8.15 per cent government security, which matures in 2022, ended slightly lower at Rs 99.46 from Thursday's close of Rs 99.49, while the yields were a tad higher at 8.23 per cent from 8.22 per cent.
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