Rupee slips to 1-week low on dollar demand

The rupee on Thursday fell by nine paise to hit a one-week low level of 54.25 against the dollar due to sustained demand for the US currency for oil and gold related payments.

The local unit commenced slightly higher at 54.14 against the dollar on firm capital inflows in equities compared with yesterday’s close of 54.16 at the Interbank Foreign Exchange market.

Bonds remain bullish on firm demand
Government securities (G-sec) gained further on persistent buying support from banks and companies.

The 8.15 per cent government security maturing in 2022 surged to Rs 103.52 from Rs 102.93 yesterday, while its yield dropped to 7.60 per cent from 7.69 per cent.

The 8.33 per cent government security maturing in 2026 shot-up to Rs 105.73 from Rs 104.89, while its yield declined to 7.63 per cent from 7.73 per cent.

The 8.07 per cent government security maturing in 2017 gained to Rs 102.40 from Rs 102.06, while its yield moved down at 7.38 per cent from 7.48 per cent.

Call rates end steady
Call money rates ended steady as demand from borrowing banks matched supplies.

The rate ended steady at 7.30 per cent.

It moved in a range of 7.35 per cent and 7.25 per cent.