Re falls as importers' dollar demand rises

Falling for the second straight day, the rupee on Thursday lost 48 paise to close at 54.96 against the dollar on heightened demand for the US currency from importers, despite robust fund flows into stocks.

At the Interbank Foreign Exchange (Forex) market, the rupee opened sharply lower at 54.80 from the overnight close of 54.49. It later dropped further to an intra-day low of 55.23 before recovering some lost ground to settle at 54.96, a fall of 0.88 per cent or 48 paise.

Bonds react downwards
Government bonds reacted downwards on heavy selling pressure from banks and companies. The 9.15 per cent government security maturing in 2024 dipped to Rs 105.7 from 105.8 previously, while its yield moved up to 8.39 per cent from 8.38 per cent. The 8.79 per cent government security maturing in 2021 fell to Rs 102.8 from 102.9, while its yield inched up to 8.34 per cent from 8.33 per cent.

Call rates recover
Call rates recovered at the overnight call money market here on Thursday on fresh demand from borrowing banks. The rate finished higher at 8.10 per cent from yesterday’s closing level of 7.05 per cent.