Rupee logs first loss in three days

Falling for the first time in three days, the rupee washed out initial gains to end four paise lower at 62.58 on Wednesday on caution ahead of US non-farm payrolls data and sustained capital outflows from Indian markets.

The rupee's movement was in contrast to Indian equities. A weak dollar index did not help the currency close in the positive territory as sentiment remained weak, traders say. At the Interbank Foreign Exchange (Forex) market, the domestic unit resumed higher at 62.42 a dollar from overnight close of 62.53 and improved further to a high of 62.35 on sustained dollar selling by exporters. It, however, later fell back to a low of 62.62 before settling at 62.58, a fall of four paise or 0.06 per cent.

Bonds drop
Government securities (G-Sec) prices declined on selling pressure from banks and corporates while, the overnight call money rates ended higher on sustained demand from borrowing banks. The 8.83 per cent government securities maturing in 2023 slipped to Rs 100.78 from Rs 100.96 previously, while its yield moved-up to 8.71 per cent from 8.68 per cent.

The 8.24 per cent government security maturing in 2027 dropped to Rs 93.23 from Rs 93.50, while, its yield gained to 9.14 per cent from 9.10 per cent.

The 8.28 per cent government security maturing in 2027 also fell to Rs 93.46 from Rs 93.80, while yield climbed to 9.13 per cent from 9.08 per cent. The overnight call money rate ended higher at 8.50 per cent from yesterday's level of 7.20, it moved in a range of 8.50 per cent and 7.90 per cent.