Rupee drops from 2-week high on dollar buying

The rupee fell from the highest level this month, on speculation importers boosted purchases of the dollar to benefit from the exchange rate.

The rupee declined 0.2 per cent to 54.31 a dollar in Mumbai, according to data compiled by Bloomberg. It touched 54.02 earlier, the strongest level since February 28.

Bonds drops further
Government bonds dropped further on sustained selling pressure from banks and companies.

The 8.15 per cent government security maturing in 2022 declined to Rs 101.58 from Rs 101.68 yesterday, while its yield inched up to 7.90 per cent from 7.89 per cent.

The 8.20 per cent government security maturing in 2025 fell to Rs 101.63 from Rs 101.76, while its yield edged up to 7.99 per cent from 7.98 per cent.

The 8.33 per cent government security maturing in 2026 slid to Rs 102.75 from Rs 102.84, while its yield also looked up to 7.99 per cent from 7.98 per cent.

Call rates recover
Overnight call money rates recovered here today due to fresh demand from borrowing banks. The rate finished higher at 7.90 per cent from the overnight closing level of 7.80 per cent. It moved in a range of 7.90 per cent and 7.60 per cent.