Rupee loses 17 paise on dollar demand

The rupee on Tuesday lost 17 paise to close at 49.36/37 against the dollar due to fresh demand for the American currency from importers, despite a firm trend in stock markets. The local unit moved between 49.23 and 49.42 at the Interbank Foreign Exchange (Forex) market, before settling at 49.36/37, down by 17 paise, 0.35 per cent. Forex dealers said had it not been for the sustained capital inflows and a weak dollar abroad, the rupee’s fall would have been steeper.

Bonds recover on fresh demand
Government securities (G-Sec) recovered on fresh buying supports from banks and companies. The 9.15 per cent (G-Sec) maturing in 2024 firmed up to Rs 106.8425

from Rs 106.6525 yesterday, while its yield moved down to 8.27 per cent from 8.29 per cent. The 8.79 per cent G-Sec maturing in 2021 rose to Rs 104.0225 from Rs 103.8150.

Call rate eases
The call rate eased on the overnight call money market here on Tuesday due to lack of demand from borrowing banks. The overnight rate finished lower at 8.70 per cent from yesterday’s closing level of 8.80 per cent. It moved in a range of 8.95 per cent and 8.60 per cent. The Reserve Bank of India under the Liquidity Adjustment Facility purchased securities worth Rs 1,70,155 crore from 66 bids at the one-day repo auction, at a fixed rate of 8.50 per cent.