Rupee snaps 2-day losing string, up at 54.37

The currency edges up by a paisa; forex dealer says bearish domestic equities restricted the rise

Snapping a two-day losing streak, the rupee on Wednesday edged up by a paisa, to end at 54.37 against the greenback on late dollar selling by exporters, amid a weak dollar abroad.

However, bearish domestic equities restricted the rise, a forex dealer said. The rupee started lower at 54.54 a dollar from the previous close of 54.37 and declined further to a low of 54.56 at the Interbank Foreign Exchange market on continued dollar demand from importers at early stages and hesitance in local equities due to political uncertainty.

Bonds remain lower
Government bonds remained bearish on selling pressure from banks and companies. The 8.15 per cent government security maturing in 2022 dropped to Rs 101.45 from Rs 101.58 previously, while its yield edged up at 7.92 per cent from 7.90 per cent. The 8.20 per cent government security maturing in 2025 slid to Rs 101.36 from Rs 101.54, while its yield moved up to 8.03 per cent from eight per cent.

Call rates end higher
Overnight money rates ended higher at the call money market here on Wednesday, due to good demand from borrowing banks. The rate finished higher at 7.70 per cent from 7.65 per cent yesterday.