After three days of relief rally, the rupee on Tuesday came under pressure, touching a low of 55.88 on heavy month-end dollar buying by oil companies amid the US dollar gaining strength globally.
Reserve Bank of India intervention helped the domestic currency finally close 49 paise lower at 55.67.
At the Interbank Foreign Exchange market, the domestic unit opened weak at 55.36 and gradually moved downwards to the day’s low of 55.88 as dollar demand emerged. Yesterday’s close was 55.18.
Bonds decline on selling pressure
Government bonds declined on selling pressure from banks and companies. The 8.79 per cent government security maturing in 2021 dropped to Rs 101.73 from 101.77 yesterday, while its yield rose to 8.52 per cent from 8.51 per cent.
The 8.54 per cent government security maturing in 2024 fell to Rs 104.52 from 104.58, while its yield gained to 8.55 per cent from 8.54 per cent.
The 8.19 per cent government security maturing in 2020 eased to Rs 98.86 from Rs 98.87, while its yield held steady at 8.39 per cent. The 8.24 per cent government security maturing in 2018, and 8.97 per cent government security maturing in 2030, were also quoted lower at Rs 99 and Rs 102.1, respectively.
However, the 8.28 per cent government security maturing in 2027 moved up to Rs 96.2 from Rs 96.15, while its yield softened to 8.73 per cent from 8.74 per cent.
Call rates move up
Call rates moved up at the overnight call money market here on Tuesday on fresh buying support from borrowing banks.
The call money rate finished higher at 8.15 per cent from yesterday’s closing level of 8.1 per cent. It hovered in a range of 8.2 per cent and 7.98 per cent.
The Reserve Bank of India under the Liquidity Adjustment Facility purchased securities worth Rs 75,450 crore from 36 bids at the one-day repo auction at a fixed rate of eight per cent.