Rupee logs biggest drop in 2 weeks, ends 29 p down

Logging its biggest loss in two weeks, the rupee on Monday tumbled 29 paise to 62.04 against the dollar, hit by global risk aversion as the Russia-Ukraine conflict threatens to snowball into a full-fledged war. Downbeat figures of the December quarter gross domestic product and fiscal deficit for April-January, released on Friday, coupled with negative domestic stock markets were also seen putting pressure on the rupee, forex traders said.

At the interbank foreign exchange (Forex) market, the domestic unit commenced lower at 61.95 a dollar from last Friday's close of 61.76. It tried to recover on initial dollar selling by exporters to touch a high of 61.83. However, it fell back on fresh dollar demand from importers and fall in local stocks to a low of 62.09.

Bonds decline, call rates end higher
Government securities bonds turned bearish on selling from banks and corporates, while the overnight call money rates recovered at the overnight call money market here on Monday on fresh demand from borrowing banks.

The 8.83 per cent 10-year benchmark bond maturing in 2023 declined to Rs 99.50 from Rs 99.77 previously, while its yield moved-up to 8.90 per cent from 8.86 per cent.

The overnight call money rate ended slightly higher at 7.00 per cent, against 6.95 per cent last Friday.

It moved in a range of 8.10 per cent and 7.00 per cent.