Re weakens six paise before US Fed meet

In listless trading, the rupee fell back by six paise to end at 54.32, amid fresh dollar demand from importers, ahead of the conclusion of the US Fed’s two-day meeting, where it is widely expected to expand the economic stimulus programme.

At the Interbank Foreign Exchange market, the domestic unit resumed slightly lower at 54.29 from the overnight close of 54.26. It later moved in a narrow 19-paise range of 54.15 and 54.34 before concluding at 54.32, showing a fall of six paise or 0.11 per cent.

Bonds continue to rule weak
Government bonds continued to rule weak on persistent selling pressure from banks and companies.

The 8.15 per cent government security maturing in 2022 softened to Rs 99.81 from Rs 99.82 previously, while its yield held steady at 8.18 per cent.

The 8.33 per cent government security maturing in 2026 declined to Rs 100.47 from Rs 100.52, while its yield inched up to 8.27 per cent from 8.26 per cent.

Call rates end higher
The overnight rates ended higher at the market here on Wednesday, on renewed demand from borrowing banks.

The rate finished higher at 8.10 per cent from eight per cent yesterday.

It moved in a range of 8.10 per cent and 7.65 per cent.