The rupee ended 38 paise weaker at 59.73 against the dollar due to increased demand for the greenback in the second half of trading. The domestic unit opened a tad stronger at 59.30 a dollar from the previous close of 59.35.
Month-end dollar demand weighed on the rupee, a dealer with a public sector bank said.
Earlier last week, the RBI had announced measures to squeeze out rupee liquidity and stabilise the depreciating rupee.
The rupee had touched a life-time low of 61.21 (intra-day) against the dollar on July 8. However, market players are not too sure that the RBI’s measures will be successful.
Some treasury heads are hopeful of the the rupee stabilising as the RBI’s efforts to steady the currency are expected to show some effect this week.
“Steps taken by RBI have helped bring about some stabilisation in the currency. The rupee should stay around 59 levels,” said N.S. Venkatesh, Head- Treasury, IDBI Bank
Call rates, G-Secs
The interbank call money rates ended higher at 7.10 per cent from the previous close of 6.30 per cent. It moved in the 7.10 to 7.40 per cent range during the day.
The benchmark 7.16 per cent government security, which matures in 2023, closed lower at Rs 93.78 from the previous close of Rs 94.74. Yields hardened to 8.08 per cent from 7.93 per cent.
The yields are expected to soften as the rupee is expected to show some strength in the week ahead.