The rupee closed weaker at 53.06 against the dollar after ratings agency Standard and Poor’s said the threat of credit rating downgrade loomed large on India. The ratings agency maintained that there was still a one-in-three chance of rating downgrade in the next 24 months. This sent the rupee crashing below the 53-level mark, a level last seen two weeks ago. Also, demand for the American currency from oil-importers put pressure on the local unit.
The rupee opened 26 paise lower at 52.98 on weak Asian markets and a stronger dollar. It had closed at 52.72 on Tuesday. Intraday, the rupee moved between a high and low of 52.85 and 53.18, respectively.
Call stable, bond drops
The overnight call money rates closed unchanged from previous close of 8.05 per cent. The 10-year benchmark, 8.15 per cent government security, maturing in 2022 closed lower at Rs 99.94 (yield: 8.15 per cent) from its previous close Rs 100.02 (yield: 8.14 per cent) on Tuesday.