Money & Banking

Rupee rises to 61.18/$

Our Bureau Mumbai | Updated on August 13, 2013 Published on August 13, 2013

The rupee ended higher at 61.18 per dollar against the previous close of 61.29 following the Government’s announcement of a hike in import duty on gold and silver.

Gold constitutes the second largest item in India’s import bill, and largely contributed to pushing up the current account deficit (CAD) in 2012-13.

Traders said the hike in import duty was a positive as it would help bring down gold imports further and narrow the trade gap.

“The announcement of a hike in the import duty on gold will help reduce the rising CAD and thereby support the sinking rupee. Going ahead, today’s US retail sales data will be very significant for the US dollar and the rupee,” Abhishek Goenka, Founder and CEO, India Forex Advisors.

Intraday, the domestic unit opened at 61.19 and touched a low of 61.66 and a high of 60.97.

Call flat, bondS up

The interbank call money rates, the rates at which banks borrow from each other to meet their short term fund requirements, ended flat from the previous close of 10.25 per cent.

The benchmark 7.16 per cent government security, which matures in 2023, ended lower at Rs 91.83 from its previous close of Rs 92.47, while yields on the security hardened by 10 basis points to 8.39 per cent from the previous close of 8.29 per cent from the previous close.


Published on August 13, 2013
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