Rupee drops to 2-week low on CAD concern

The rupee fell 0.3% to 54.44 a dollar here

The rupee fell to a two-week low after the nation's current-account deficit widened to a record in the fourth quarter of 2012.

The shortfall in the broadest measure of trade was $32.6 billion in the three months through December as imports of oil and gold surged, while export growth slowed, official data showed March 28. The government estimated February 28 that Asia's third-largest economy will need more than $75 billion of inflows in the year through March 2014 to fund the current account gap.

The rupee fell 0.3 per cent to 54.44 a dollar here, data compiled by Bloomberg show.

Bonds recover on good demand
Government securities (G-sec) rose on good buying support from banks and companies.

The 8.33 per cent G-sec maturing in 2026 shot up to Rs 102.17 from Rs 101.85 yesterday, while its yield declined to 8.06 per cent from 8.10 per cent. The 8.15 per cent G-sec maturing in 2022 surged to Rs 101.18 from Rs 100.99, while its yield went down to 7.96 per cent from 7.99 per cent.

Call rates end lower
Call money rates ended lower due to lack of demand from borrowing banks amid ample liquidity in the banking system. The rate finished lower at 6.75 per cent from previous close of seven per cent. It moved in a range of 7.65 per cent and 6.60 per cent.