Rupee pares losses, but stays above 56

| | Updated on: May 31, 2012
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The rupee stayed stubborn at above the 56 per dollar mark for the second consecutive day as the investment sentiment in the country continued to be weak.

This is also the second consecutive week when the local currency has breached the 56 per dollar barrier.

The rupee closed at 56.06 against the dollar. It opened at an all-time low of 56.50.

“There will be some more volatility back and forth in the rupee. Today GDP figures would have had an impact on the rupee,” Rohit Bammi, Partner with KPMG, said.

The rupee has declined due to several reasons – high inflation lead by high import of oil, slowing growth, policy paralysis, external factors like the euro-zone crisis and sagging investor confidence – among others.

GDP growth

Meanwhile, India’s GDP grew at 5.3 per cent in the fourth-quarter ended March 31, 2012. This is the slowest pace of growth recorded in the past three years.

Global economic situation also remains uncertain with trouble brewing in European countries like Spain and Greece. The situation is believed to have ripple effect on markets world-over.

Call rates, G-Secs

Call rates softened to 7.30 per cent at close. It opened at 8.25 per cent.

The benchmark 8.79 per cent Government Security maturing in 2021 closed at Rs 102.44 at a yield of 8.40 per cent. It opened at Rs 101.90.


Published on November 15, 2017

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