Rupee ends weak as imports rush for dollar

The rupee ended weak on Wednesday due to dollar demand by importers rushing to cover up their near-term positions before the October 17 US debt deadline. However, dollar flows from custodian banks did not allow the rupee to weaken sharply. The rupee ended at 61.94, compared to Tuesday's close of 61.80 a dollar. The rupee had opened at 62.08 and during intra-day trade touched a high of 61.73 and a low of 62.31 a 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 61.50 and 62.50 a dollar," said Sandeep Gonsalves, forex consultant and dealer, Mecklai & Mecklai.

Bonds remain up

Government securities (G-secs) remained up on consistent buying support from banks and companies. The 7.16 per cent G-sec maturing in 2023 climbed to Rs 91.57 from Rs 91.33 on Tuesday, while its yield eased to 8.46 per cent from 8.50 per cent. The 8.28 per cent G-sec maturing in 2027 gained to Rs 94.77 from Rs 94.69, while its yield edged down at 8.92 per cent from 8.93 per cent.

Call rates end higher

Call money rates ended higher at the overnight market on Wednesday due to good demand from borrowing banks. The rates ended higher at nine per cent. It moved in a range of 9.10 per cent and 8.90 per cent.