Rupee ends at over one-week low

The rupee ended at a one-week low on Thursday, as importers stepped up their dollar purchases to pay their year-end bills.

The dollar-rupee exchange rate ended at 62.67, down 33 paise compared with the previous close. The rupee had opened at 62.56, and during intra-day trades, it touched a low of 62.77 a dollar. The rupee had ended at 62.69 on March 18.

“Due to the tension in the West Asia, oil companies were major dollar buyers. Besides that, there was also month-end dollar demand from corporates. The dollar inflows into India got absorbed by the demand from various parties. The rupee may trade in the range of 62.50 to 63 tomorrow,” said Sandeep Gonsalves, forex consultant and dealer, Mecklai & Mecklai.

West Asian tensions specifically airstrikes launched by Saudi Arabia in Yemen has pushed up oil prices due to which oil companies were seen buying dollars.

According to Suresh Nair, director Admisi Forex losses in shares amid speculation that foreign portfolio investors may be exiting the markets also weighed on the currency. Most of the emerging market currencies also ended weak on Thursday.

However, despite Thursday's weakening, the rupee has appreciated by 37 paise since the start of 2015.

Meanwhile, government bond yields rose on Thursday tracking a surge in global oil prices, raising concerns about inflation. The yield on the 10-year benchmark bond ended at 7.80 per cent compared with previous close of 7.77 per cent.