Rupee ends weak as importers rush for dollars ahead of US debt deadline

However, dollar inflows from custodian banks did not allow the rupee to weaken sharply

The rupee ended weak on Wednesday due to dollar demand by importers who want to cover up their near term positions before October 17 US debt deadline. However, dollar flows from custodian banks did not allow the rupee to weaken sharply.

 

The rupee ended at Rs 61.94 compared with previous close of Rs 61.80 per dollar. The rupee had opened at Rs 62.08 and during intra-day trades touched a high of Rs 61.73 and a low of Rs 62.31 per dollar.

 

“There is a bit of uncertainty before October 17 due to which importers are covering up their dollar requirements. In the next few days the rupee will trade in the range of Rs 61.50 to Rs 62.50 per dollar,” said Sandeep Gonsalves, forex consultant and dealer, Mecklai & Mecklai. 

 

Meanwhile, government bond yields fell during the day due to liquidity flow in the system. The yield on the 10-year benchmark government bond 7.16% 2023 ended at 8.46% compared with previous close of 8.50%.