Rupee plunges 30 p to one-month low

The rupee on Monday was down 30 paise to end the day at an almost one-month low of 60.59 against the dollar due to fresh demand for the US currency from importers, mainly oil refiners despite a surge in stocks.

At the interbank foreign exchange (forex) market, the domestic unit plunged to 60.61 before settling at 60.59, a fall of 30 paise or 0.50 per cent from its previous close.

Forex managers attributed weakness in the rupee value to heavy dollar demand from importers, mainly oil refiners, to meet their month-end requirements.

The 8.83 per cent government security maturing in 2023 fell to Rs 99.78 from Rs 99.86, while its yield inched-up to 8.86 per cent from 8.85 per cent. The 7.28 per cent government security maturing in 2019 also declined to Rs 93.7175 from Rs 93.75, while its yield edged-up to 8.83 per cent from 8.82 per cent.

However, the 8.24 per cent government security maturing in 2027 climbed to Rs 93.2150 from Rs 92.85, while its yield dropped to 9.15 per cent from 9.20 per cent.

The overnight call money rate finished higher at 9.20 per cent from 8.00 per cent previously and it moved in a range of 9.20 per cent and 8.00 per cent.

The Reserve Bank of India, under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 189.68 billion in 48-bids at the 1-day repo auction at a fixed rate of 8.00 per cent today morning, and sold securities worth Rs 29.16 billion from 20-bids at the 4-days reverse repo auction at a fixed rate of 7.00 per cent as on evening of April 17th.