The rupee trimmed early morning gains on Tuesday to close marginally lower at 55.09 against the dollar due to less capital flows and dollar buying by oil importers.
The Indian unit today had opened stronger against the dollar at 54.83 from its previous close of 55.05 on Monday. It had surged to 54.79 in the early trades on positive domestic and Asian share markets and hopes of a compromise in the US over the impending fiscal cliff.
“Dollar demand from importers will continue to put pressure on the Indian currency,” said N S Venkatesh, Chief General Manager and Head of Treasury, IDBI Bank.
“Fewer inflows due to sticky imports and less exports are adding to the rupee woes,” Venkatesh said.
Forex market trading may also be influenced by the European officials’ meeting today to discuss aid for debt-stricken Greece.
The rupee has fallen nearly 3 per cent against the US dollar over the past one month on increased concerns of global risk aversion.
Call Rates and G-Secs
The overnight call money rates closed lower at 8.10 per cent from Monday’s close of 8.15 per cent. intra-day, the call rates traded between 7.95 and 8.15 per cent range.
Amid less demand and supply, the 10-year benchmark 8.15 per cent Government security, which matures in 2022, was ended lower at Rs 99.66 from a close of Rs 99.72, while the yields were marginally higher at 8.20 per cent from 8.19 per cent.
beena.parmar@thehindu.co.in
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