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The rupee on Thursday plunged to 61.84 against the dollar from Tuesday’s close of 61.42 due to heavy capital outflows amid increased global economic growth concerns.
The markets had remained closed on Wednesday on account of State Assembly elections.
The domestic unit opened weaker at 61.54 at the Interbank Foreign Exchange market. After which, it strengthened to 61.43 a dollar on mild inflows. However, it declined to 61.93 as global growth concerns dragged the sentiments of the domestic equity markets thereby impacting the dollar outflows.
The RBI Governor Raghuram Rajan has indicated that inflation is showing signs of easing. He added that India is seeing a pick-up in economic growth although more could be done to support that on a sustainable basis.
Call Rates, Bond yields drop
The interbank call money rate, the rate at which banks borrow short term funds from one another, ended sharply weaker at 6.90 per cent from a close of 9.00 per cent on Tuesday.
The yield on 10-year benchmark 8.40 per cent government security, maturing in 2024, softened further to 8.36 per cent from 8.39 per cent. The price of the security ended higher for the second consecutive day at Rs 100.18 from Rs 100.00.
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