Money & Banking

Rupee slips further to 52.72

Our Bureau Mumbai | Updated on October 09, 2012 Published on October 08, 2012

BL10RUPEE

The rupee snapped early gains on Tuesday to close weaker at 52.72 against the American currency on dollar buying by oil companies and a weak euro.

“Persistent dollar demand from all major banks triggered the rupee’s fall against the dollar. In addition, a weak euro contained the morning gains,” said a chief dealer at a public sector bank.

The domestic unit had opened higher at 52.33 from Monday’s close of 52.63 as the euro and Asian markets surged on expectations of liquidity easing globally.

The International Monetary Fund on Monday cut India's growth forecast to 4.9 per cent for 2012, down from a forecast of 6.1 per cent in July. Further, dollar buying by importers and outcome of reform measures are likely to impact the currency.

Call Rates and G-Secs

The overnight call money rates closed a tad lower at 8.05 per cent from Monday’s close of 8.10 per cent. The call rates had opened flat at 8.10 per cent.

The 10-year benchmark 8.15 per cent government security, maturing in 2022, ended marginally higher at Rs 100.02 from a close of Rs 99.99 on Monday, while the yield remained almost flat at 8.14 per cent.

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Published on October 08, 2012
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