Rupee at two-week low on current-account concern

The rupee fell to the lowest level in almost two weeks on concern the nation’s current-account deficit will widen to a record as Europe’s debt crisis hurts exports.

The rupee declined 0.2 per cent from August 14 to 55.78 per dollar in Mumbai, according to data compiled by Bloomberg. It touched 56.04 earlier, the weakest level since August 3.

Bonds remain bearish
Government bonds remained weak on continued selling pressure from banks and companies. The 8.15 per cent government security maturing in 2022 dropped to Rs 99.22 from Rs 99.52 previously, while its yield rose to 8.26 per cent from 8.22 per cent.

The 8.33 per cent government security maturing in 2026 fell to Rs 99.22 from Rs 99.52, while its yield moved up 8.42 per cent from 8.39 per cent. The 8.19 per cent government security maturing in 2020 slid to Rs 99.18 from Rs 99.38 while its yield gained to 8.34 per cent from 8.30 per cent.

The 9.15 per cent government security maturing in 2024, and 8.07 per cent government security maturing in 2017 and 8.28 per cent government security maturing in 2027 were also quoted lower at Rs 105.60, Rs 99.44 and Rs 97.04, respectively.

Call rates end lower
The overnight call money rates also finished lower at the overnight call money market here today due to lack of demand from borrowing banks.

The call money rate finished lower at eight per cent from the previous level of 8.05 per cent. It moved in a range of 8.10 per cent and 7.80 per cent.

The Reserve Bank of India under the Liquidity Adjustment Facility purchased securities worth Rs 586.95 crore from 27 bids at the one-day repo auction at a fixed rate of eight per cent.