Money & Banking

Rupee falls on weak euro

PTI Mumbai | Updated on November 08, 2011 Published on November 08, 2011

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The rupee fell against the US dollar on Tuesday, tracking a weak euro and weighed by dollar buying by importers to settle bills. The dollar was trading at Rs 49.48, down from Rs 49.10 late Friday. Local bond and currency markets were closed Monday for a public holiday.





The local currency was also weighed by India's widening trade deficit, which ballooned in October to its highest in four years as exports slowed sharply amid weakening global demand, while import payments surged due to high crude oil prices and a rise in coal imports.





Bond drops, call recovers



Government bonds dropped further due to sustained selling pressure from banks and corporates while call rates recovered at the overnight money market owing to fresh buying support from borrowing banks amid scarcity of liquidity in the banking system.



The overnight call rate finished higher at 8.65 per cent from last Friday's close of 7.75 per cent.

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Published on November 08, 2011
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