Comments
After touching a 7-week high of 53.77 against the dollar, the rupee pared gains to end weaker on Wednesday at 54.20 due to dollar buying by banks and importers.
On Tuesday, the Indian unit had gained 48 paise to close at 54.14 per dollar.
Breaching the 53-mark on Wednesday, the unit opened stronger at 53.90 on the back of positive global markets and hopes of interest rate cut by the Reserve Bank of India.
With lower wholesale inflation figures in March, investors are expecting a repo rate cut by the central bank in its monetary policy review on May 3. This is likely to revive growth in the industry and boost currency sentiment.
In addition, the sell-off in global commodities is seen taking the pressure off India’s record high current account deficit. A which causes a drag on the rupee.
However, dollar demand from banks and importers weighed on the rupee.
Call rates, G-Secs
The inter-bank call money rates ended Flat from the previous close of 7.65 per cent. Intra-day, the call money market moved in the 7.25 to 7.65 per cent range
The benchmark 8.15 per cent government security, which matures in 2022, closed higher at Rs 102.22 from Tuesday’s close of Rs 102.09. Yields declined to 7.80 per cent from 7.82 per cent.
The widely traded 8.33 per cent security, which matures in 2026, ended at Rs 103.91 from Rs 103.66, while yields stood at 7.84 per cent.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.