Re nears all-time low, closes at 57.15

The rupee fell on Wednesday, staying near record lows, as oil importers stepped up their dollar purchases at the end of the month, while caution ahead of a European Union Summit sapped demand for risk currencies. Traders did not spot any central bank intervention in the session after RBI was widely seen as having sold dollars in each of the four previous sessions. Those interventions have come as the rupee has resumed declines to record lows against the dollar, mirroring declines in May. The currency hit its lowest ever at 57.32 on Friday. The rupee settled at 57.15/16, compared with Tuesday’s close of 57.01/02, and bringing it close to a record closing low of 57.16 hit on June 22.

Bonds decline
Government bonds declined on selling pressure. The 9.15 per cent government security maturing in 2024 dipped to Rs 105.65 from 105.83 yesterday, while yield gained to 8.40 per cent from 8.38 per cent. The 8.79 per cent government security maturing in 2021 fell to Rs 102.77 from 102.8450, while yield rose to 8.36 per cent from 8.34 per cent.

Call rates end stable
Call rates held steady at the overnight call money market as demand matched supply. The 8.19 per cent government security maturing in 2020 slid to Rs 100.0925 from Rs 100.1575, while its yield edged up to 8.17 per cent from 8.16 per cent.