Rupee drops to nearly five-month low vs dollar

Government securities firmed up on good buying support from banks and companies

The rupee closed at a nearly five-month low of Rs 55.11 on sustained dollar demand from oil importers and concern over possible rating downgrade by S&P.

Bonds maintain uptrend
Government securities (G-sec) firmed up on good buying support from banks and companies. The 8.33 per cent G-sec maturing in 2026 rose to Rs 108.06 from Rs 107.52 previously, while its yield declined to 7.36 per cent from 7.42 per cent.

Call rates recover
The rates recovered on fresh demand from borrowing banks. It finished higher at 7.30 per cent from last Friday’s close of 7.20 per cent.