Rupee ends 28 paise lower against dollar

The rupee on Wednesday lost 28 paise to close at 61.22 against the dollar due to sustained dollar demand from importers, ahead of release of key economic data later in the day.

Renewed capital inflows, stable equities and weak dollar overseas failed to stem the rupee fall, a forex dealer said.

At the Interbank Foreign Exchange (Forex) market, the local unit commenced weak at 61.10 a dollar from previous close of 60.94.

It fell to a low of 61.26 before ending at 61.22, a loss of 28 paise. This is rupee's second straight day of losses. On Tuesday, it ended the trade nine paise lower.

Government securities (G-sec) extended its gained on consistent buying support from banks and corporates while, the overnight call money market rates slipped due to lack of demand from borrowing banks amidst ample liquidity in the banking system.

The 8.83 per cent 10-year benchmark bond maturing in 2023 surge to Rs 100.7150 from Rs 100.60 previously, while its yield edged-down 8.72 per cent from 8.73 per cent.

The 8.12 per cent government security maturing in 2020 climbed to Rs 95.2450 from Rs 95.1425, while yield moved down to 9.07 per cent from 9.09 per cent.

The overnight call money rate finished lower at 8.10 per cent from 8.15 per cent yesterday and moved in a range of 8.60 per cent and 8.00 per cent.

The 8.28 per cent government security maturing in 2027 also gained to Rs 93.20 from Rs 93.06, while yield eased to 9.17 per cent from 9.19 per cent. The 7.28 per cent government security maturing in 2019, the 8.24 per cent government security maturing in 2027 and the 7.16 per cent government security maturing in 2023 were also quoted higher at Rs 93.50, Rs 93.00 and Rs 87.77, respectively.

The overnight call money rate finished lower at 8.10 per cent from 8.15 per cent yesterday and moved in a range of 8.60 per cent and 8.00 per cent.