Rupee slides on strong dollar demand

The currency dips by 24 paise to end at 54.39, extending losses for second straight session

Heavy dollar demand from banks and importers on Tuesday pulled down the rupee by 24 paise to end at 54.39, extending losses for a second straight session. However, a stable stock market and some capital inflows capped the local currency's fall to some extent, forex dealers said.

The rupee resumed lower at 54.24 against the dollar from its last closing level of 54.14 per dollar at the Interbank Foreign Exchange market.

Bonds maintain uptrend
Government securities (G-sec) surged on consistent demand from banks and companies. The 8.33 per cent G-sec maturing in 2026 climbed to Rs 104.44 from Rs 104.25 yesterday, while its yield moved down to 7.78 per cent from 7.81 per cent.

The 8.20 per cent G-sec maturing in 2025 surged to Rs 103.34 from previous level of Rs 103.22, while its yield edged down to 7.77 per cent from 7.79 per cent.

The 8.15 per cent G-sec maturing in 2022 rose to Rs 102.67 from Rs 102.55, while its yield eased to 7.73 per cent from 7.75 per cent.

Call rates also end higher
Call money rates ended higher due to good demand from borrowing banks.

The rate finished higher at 7.75 per cent from previous close 7.60 per cent.