Rupee weakens 2 paise on renewed $ demand

However, sluggish dollar abroad capped the rupee's fall to some extent

Snapping a two-session upmove, the rupee on Tuesday weakened by two paise to 54.59 against the dollar, due to renewed demand for the US currency from importers and continued capital outflows, amid weakness in local equities.

However, a sluggish dollar abroad capped the rupee's fall to some extent, forex dealers said. The local currency commenced the day's trade on a firm note at 54.49 against the dollar from yesterday's close of 54.56 at the Interbank Foreign Exchange market. Later, it hovered in a volatile range of 54.41-54.65.

Bonds maintain uptrend
Government securities (G-sec) maintained an uptrend on persistent demand from banks and companies.

The 8.15 per cent G-Sec maturing in 2022 gained Rs 101.71 from Rs 101.53 yesterday, while its yield eased to 7.88 per cent from 7.91 per cent. The 8.07 per cent G-sec maturing in 2017 climbed to Rs 101.11 from Rs 101.07, while its yield inched down to 7.75 per cent from 7.76 per cent. The 8.33 per cent G-sec maturing in 2026 also surged to Rs 102.96 from Rs 102.75, while its yield moved down to 7.96 per cent from 7.99 per cent. The 8.20 per cent G-sec maturing in 2025, the 8.97 per cent maturing in 2030 and the 8.12 per cent maturing in 2020 also quoted higher at Rs 101.92, Rs 107.66 and Rs 101.83, respectively.

Call rates end lower
Call money rates also finished lower here on Tuesday, due to lack of demand from borrowing banks. They finished at 7.60 per cent from 7.70 per cent previously.