The rupee today lost 22 paise to close at one-week low of 54.99 against the dollar due to month-end demand for the US currency from importers, ending calender year 2012 with a total loss of 189 paise.
Forex dealers said a firm dollar overseas also weighed on the rupee.
The local currency commenced little higher at 54.76 from last close of 54.77 at the Interbank Foreign Exchange (Forex) market. The rupee, however, fell back to a low of 55 on renewed dollar demand from importers, mainly oil refiners, to meet their month-end as well as quarter-end demands, before settling at 54.99, a fall of 22 paise, or 0.40 per cent.
The US Government’s failure to clinch a deal on the cliff issue will see huge spending cuts and tax hikes for millions of middle-income earners in America. This will have the potential to cramp the US and the world economy.
However, if a deal is hammered then the markets will see a positive rally. The rupee will also likely appreciate against the dollar.
Call rates, G-Secs
The interbank call rates opened higher at 8.15 per cent from Friday’s close of 7.9 per cent. Intraday, the call rates were trading at 8.40 per cent.
The 10-year benchmark 8.15 per cent government security, which matures in 2022, was trading higher at Rs 100.70 (yield: 8.04 per cent). On Friday it had closed at Rs 100.28. (yields: 8.10 per cent).