Rupee at one-week low on Euro debt crisis

The rupee fell to the lowest level in more than a week on concern European leaders will find it difficult to contain their region’s debt crisis, hurting economic growth in emerging markets.

The currency declined 0.4 per cent to 55.69 per dollar, according to data compiled by Bloomberg. It touched 55.73 earlier, the weakest level since August 17.

Technical charts indicate the rupee is unlikely to strengthen past 54.71 in the coming weeks, according to BNP Paribas. One-month implied volatility, a measure of exchange-rate swings used to price options, was unchanged at 9.95 per cent.

Bonds firm up on sustained demand
Government securities (G-sec) firmed up on sustained demand from banks and companies.

The 8.15 per cent G-sec maturing in 2022 climbed to Rs 99.74 from Rs 99.60 last Friday, while its yield moved down 8.19 per cent from 8.21 per cent.

The 8.33 per cent G-sec maturing in 2026 surged to Rs 99.78 from 99.62, while its yield slipped to 8.36 per cent from 8.38 per cent.

Call rate ends higher
Call rates moved up at the overnight call money market here today on good demand from borrowing banks.

The overnight call money rate finished higher at eight per cent. It moved in a range of 8.05 per cent and seven per cent.