Forex

Rupee slips 10 paise

OUR BUREAU Mumbai | Updated on March 13, 2018 Published on January 23, 2014

27BL27_IW_RUPEE   -  Business Line

The rupee closed 10 paise lower at 61.93 against the American currency, compared to previous close, hurt by month-end demand for dollar from oil importers. Currency market participants remained cautious ahead of the third-quarter monetary policy review by the RBI slated for Tuesday next. It is widely expected that the RBI will hold key interest rates unchanged as inflation remains uncomfortably high and the impact of the monthly $10-billion Fed-taper is yet to pan out fully. The currency might gain if the RBI springs a surprise by cutting key rates or brings down the cost of funds for banks. Intraday, the rupee moved in the 61.89-62.04 range.

The currency markets have remained less volatile over the past month or so, after the RBI and the Government expressed confidence that the current account deficit will be kept well under check.

Call rates rise, bond yields harden

The interbank call money rate, the rate at which banks borrow short-term funds from each other, closed higher at 8.10 per cent after closing at 6.85 per cent on Wednesday. Yield on the benchmark 8.83 per cent government bond, maturing in 2023, further hardened to 8.67 per cent from previous close of 8.60 per cent. The price on the government security fell to Rs 101.05 from Wednesday’s close of Rs 101.43.

The yields have hardened over 12 basis points over the past two days. Our Bureau

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Published on January 23, 2014
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