Rupee declines on US concern

The rupee fell by five paise to Rs 44.40 against the US dollar in early trade on the Interbank Foreign Exchange on Monday, weighed by weakness in shares and some demand from importers for the American currency.

Forex dealers said in addition to a weak start in the stock market, the demand for the US dollar from importers mainly put pressure on the rupee. The rupee gained 15 paise to close at a two-week high of Rs 44.35/44.36 against the US currency on Friday, on fresh dollar-selling by banks and exporters amid a rally in equity markets.

Meanwhile, the Bombay Stock Exchange benchmark Sensex fell by 51.46 points, or 0.27 per cent, to 18,670.84 in opening trade on Monday.

BONDS FIRM UP
Government bonds firmed up on fresh buying support from banks and companies.

The 7.80 per cent gove-rnment security maturing in 2021 hardened to Rs 96.74 from Rs 96.60 previously, while its yield eased to 8.29 per cent from 8.31 per cent. The 8.08 per cent government security maturing in 2022 rose to Rs 97.64 from Rs 97.52, while its yield declined to 8.41 per cent from 8.43 per cent.

CALL RATE EASES
The call rate moved down on the overnight call money market on Monday due to ample liquidity in the banking system. The overnight call money rate moved in a range of 7.70 per cent and 7.45 per cent before finishing at 7.55 per cent.