Forex

Rupee drops to 61.55/$

Our Bureau Mumbai | Updated on March 12, 2018

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The rupee ended weaker at 61.55 against the US dollar as higher demand for the currency from importers, ahigher inflation figure and weaker factory output dampened sentiments.

The Indian unit had closed at 61.07 last week.

The wholesale price index-based inflation rose to 6.46 per cent in September, dampening hopes that the Reserve Bank of India will cut rates in its second quarter review of monetary policy on October 29.

In the absence of significant macro-economic indicators at home, currency traders will look at the US policymakers as they are locked in a battle over the country’s debt limit.

“The rupee was seen depreciating against the US dollar today due to weak IIP data released on Friday, WPI released today and dollar demand… The market will continue to remain volatile amid US debt ceiling issue. Although an 11{+t}{+h} hour decision is expected from the US, the market will be witnessing jerks till then,” said Abhishek Goenka, Founder and CEO, India Forex Advisors.

Intraday, the rupee moved in the 61.07-61.55 range.

Call rates slip, bond yields harden

The inter-bank call money rate, the rate at which banks borrow from each other to meet their short-term fund requirements, closed lower at 8.95 per cent against the previous close of 9 per cent.

The 7.16 per cent government security, which matures in 2023, closed lower at Rs 90.86 against the previous close of Rs 91.38. The yields hardened sharply to 8.57 per cent from the previous close of 8.48 per cent. Bond yields and prices move in opposite directions.

>satyanarayan.iyer@thehindu.co.in



Published on October 14, 2013

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