Rupee at 11-month low on dollar demand

Continuing its slide for the fifth straight session, the rupee on Monday slumped 26 paise to hit a new 11-month low of 56.77 on fag-end dollar buying and capital outflows from local equities.

Forex dealers said bleeding domestic stocks and a weakening bond market firming up the dollar in turn, weighed upon the rupee. Foreign institutional investors pulled out Rs 86.66 crore from local stocks on Monday, according to provisional Bombay Stock Exchange data.

Bonds end bearish
Government bonds securities ended lower on selling pressure from banks and corporates. The 8.33 per cent government security maturing in 2026 declined to Rs 107.48 from Rs 107.53 previously, while its yield inched up to 7.43 per cent from 7.42 per cent.

The 8.20 per cent government security maturing in 2025 fell to Rs 106.24 from Rs 106.28, while its yield edged up to 7.42 per cent from 7.41 per cent.

The 8.15 per cent government security maturing in 2022 also went down to Rs 104.49 from Rs 104.58, while its gained to 7.46 per cent from 7.44 per cent.

The 7.16 per cent government security maturing in 2023, the 8.07 per cent maturing in 2017 and the 9.15 per cent maturing in 2024 also moved down to Rs 99.41, Rs 102.52 and Rs 100.19, respectively.

Call rates finish higher
Call rate finished higher on fresh demand from borrowing banks. The rate finished higher at 7.30 per cent from previous closing level of 6.60 per cent.

It moved in a range of 7.35 per cent and 7.20 per cent. The Reserve Bank of India under the liquidity adjustment facility purchased securities worth Rs 72,525 crore in 28 bids at the one-day repo auction at a fixed rate of 7.25 per cent.