Rupee slips further on weak global markets

Beena Parmar Updated - March 12, 2018 at 02:23 PM.

BL13_P6_DOLLAR_-RUPEE

The rupee slipped on Tuesday to end at 56.12 against the dollar from Monday’s close of 55.98 due to the pressure of a weaker euro and global risk aversion.

Global risk assets and the euro fell against the dollar on weak German manufacturing data on Tuesday raising concerns about slowing growth in the economy.

The Indian currency that opened weaker at 56.10 on global risky assets and a sliding euro touched an intra-day low of 56.17 per dollar. However, it gained in the latter session on higher dollar selling and mild FII inflows.

“Dollar selling by a large petrochemical company and exporters led the rupee to gain in the second trading session,” said a chief dealer of a public sector bank.

“The rupee is likely to stay volatile on concerns of a falling euro and global risky assets,” the dealer said.

The currency had closed at more than 3-week low on Monday as global risk aversion mounted on Greece to exit the euro zone.

Further, Moody's had downgraded Germany and Netherland's sovereign outlook to negative on Monday. The ratings agency had also cited an increased chance of Greece leaving the euro zone.

Call rates flat; G-Secs ends lower

The interbank call rates ended flat at 8 per cent. It had opened at 8.05 per cent from yesterday’s close of 8 per cent. Intra-day, the call money market moved in the range of 7.95 per cent to 8.05 per cent.

The frequently traded 9.15 per cent government bond maturing in 2024 ended lower at Rs 106.60 (yield: 8.28 per cent) from Monday’s close of Rs 106.74 (yield: 8.26 per cent).

The 8.15 per cent bond maturing in 2022 closed slightly lower at Rs 100.51 (yield: 8.07 per cent) from Rs 100.55 (yield: 8.06 per cent) yesterday.

>beena.parmar@thehindu.co.in

Published on July 24, 2012 04:41