Rupee falls on dollar demand by importers

The rupee on Thursday fell by 16 paise to close at 51.58/59 against the US currency on fresh dollar demand from importers and some banks despite firm local equity markets.

At the Interbank Foreign Exchange (Forex) market, the domestic unit opened higher at 51.39/40 a dollar from overnight close of 51.42/43 and immediately touched a high of 51.25 on renewed selling of dollars by banks and exporters.

Later, it reacted downwards to close at 51.58/59 per dollar, showing a loss of 16 paise or 0.31 per cent on fresh dollar demand from importers amidst firm dollar overseas.

“The rupee witnessed a firm opening. It was volatile after weak IIP numbers. The pair reacted to the moves of dollar and remained volatile,” said Pramit Brahmbhatt, CEO, Alpari Financial Services (India).

Bonds continue to rule firm, call rate reacts downwards
Government securities (G-Sec) continued to rule firm on sustained buying support from banks and corporates while call rates reacted downwards at the overnight money market here on Thursday.

The 9.15 per cent (G-Sec) maturing in 2024 shot up further to Rs 105.0750 from Rs 104.20 yesterday, while its yield dropped to 8.48 per cent from 8.60 per cent. The 8.79 per cent (G-Sec) maturing in 2021 remained firm to Rs 102.3 from Rs 101.6, while its yield declined to 8.44 per cent from 8.57 per cent.

The overnight call money rate finished lower at 8.75 per cent from yesterday's close of 8.85 per cent.