The rupee ended weaker at 54.41 against the dollar as the greenback strengthened on robust US employment data.
On Friday, the domestic unit had gained 28 paise to close at over one-week high of 54.29 per dollar. The unit fell by 24 paise in early trade to 54.52 after opening lower at 54.45 at the Interbank Foreign Exchange market.
However, robust export data showing signs of a decline in current account deficit boosted the rupee. Exports showed a pick-up in February, growing by 4.25 per cent from a year earlier, narrowing the trade deficit to $14.92 billion. Intra-day, the rupee gained to 54.17 after which a stronger dollar capped initial gains.
The rupee is likely to find support from the proposed share sales of Government-owned companies lined up in March. The expectation of a rate cut by the central bank in its monetary policy review on March 19 is likely to help the currency .
Call up, bonds flat
The inter-bank call money market closed higher at 7.85 per cent from a close of 7.70 per cent on Friday. During the day, it moved in the 7.60 per cent to 7.90 per cent range. The widely traded 8.15 per cent government security, which matures in 2022, closed almost flat at Rs 101.98 from Friday’s close of Rs 101.99, while the yields increased to 7.84 per cent from 7.83 per cent.