Paring its early gains, the rupee on Tuesday lost 33 paise to close at nearly three-month low of 51.47/48 against the US currency following heavy dollar demand from importers amid some hesistancy in local stocks.
Firm dollar overseas amid fresh capital outflows too dampened the rupee sentiment, a dealer said.
However, heavy dollar demand from importers, mainly oil importers, later weighed on the rupee and it fell back to a low of 51.5 before concluding at 51.47/48, a net loss of 0.65 per cent.
"The rupee reversed the gains on non-deliverable forward (NDF) arbitrage buying and strengthening dollar. RBI's intervention aided some gains but the price couldn't sustain the gains and edged lower," Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said.
Bonds remain firm, call rate eases
The government securities (G-Sec) continued to rule firm on persistent buying by banks and corporates.
The 9.15 per cent (G-Sec) maturing in 2024 moved up further to Rs 103.8 from Rs 103.5 yesterday, while its yield dropped to 8.64 per cent from 8.7 per cent.
Overnight call money market on Tuesday on better liquidity in the banking system. It fell back slightly to conclude at 8.75 per cent from 8.80, before moving in a range of 9.10 per cent and 8.75 per cent.