Rupee falls on S&P comments

The rupee fell to a more-than-five-week low on Thursday after Standard & Poor's said the country might face a rating downgrade next year if the new government failed to revive economic growth and on reports that oil refiners had resumed buying some of their dollar requirements from the market. S&P said it might cut India's sovereign rating to below investment grade, should the next government fail to provide a credible plan to reverse India's low economic growth.

The rupee was also hit by reports quoting a top finance ministry official as saying 30-40 per cent of the state-run companies' oil demand had returned to markets. The partially convertible rupee closed at 62.41/42 a dollar compared to 62.39/40 on Wednesday. It fell to an intra-day low of 62.73, its lowest since September 30.

Bonds remain bearish
Government securities (G-secs) continued to remain bearish on persistent selling pressure from banks and companies. The 7.16 per cent G-sec maturing in 2023 dropped to Rs 89.26 from Rs 89.44 previously, while its yield gained to 8.85 per cent from 8.82 per cent.

Call rates end steady
Call money rates ended steady at the overnight market as demand from borrowing banks matched supplies. The rates ended stable at 8.75 per cent. It moved in a range of 8.75 per cent and eight per cent.