Call rates fall sharply, rupee down 1 p

The rupee on Thursday softened by a paisa to close at 62.23 against the dollar on late demand for the American currency from importers and tracking weakness in local equities.

The rise in dollar index, a gauge of six major global rivals, was up 0.13 per cent, also led to the rupee closing lower.

At the Interbank Foreign Exchange (Forex) market, the local unit commenced lower at 62.35 a dollar from the previous close of 62.22. It then dropped further to a low of 62.45 on initial dollar demand from exporters.

The government bonds finished mixed due to alternate bouts of buying and selling. The 8.83 per cent 10-year benchmark bond maturing in 2023 declined to Rs 100.2475 from Rs 100.38 Tuesday, while its yield moved up 8.79 per cent from 8.77 per cent. The 8.12 per cent government security maturing in 2020 dropped to Rs 94.8175 from Rs 94.86, while the yield looked up to 9.16 per cent from 9.15 per cent. The 8.28 per cent government security maturing in 2027 fell to Rs 92.53 from Rs 9.24, while yield firmed up to 9.26 per cent from 9.24 per cent. The overnight call money fell sharply to 6.90 per cent from 9.00 per cent previously. It fluctuated between a high of 8.20 per cent and a low of 6.90 per cent earlier.