Rupee weakens despite RBI's intervention

Rupee opened at Rs 61.90 and during intra-day trades touched a low of Rs 62.57 and a high of Rs 61.77 per dollar

After two straight days of strengthening, the rupee weakened on Friday, on the back of dollar demand from oil importers and dollar buying by custodian banks. The Reserve Bank of India (RBI) intervened in the market through state-run banks, but could not save the rupee.

The Indian currency ended at 62.50 on Friday, compared with the previous close of 62.08. The rupee had opened at 61.90 and, during intra-day trades, touched a low of 62.57 and a high of 61.77 against the greenback. However, the rupee is expected to strengthen next week.

“There will not be month-end dollar demand next week due to which the rupee will strengthen. It may trade in the range of 60.50-63.00 per dollar," said a currency dealer with a public-sector bank.

The rupee has depreciated by 15.14 per cent since the start of this financial year, the yield on the 10-year benchmark government bond 7.16 per cent 2023 ended stable at 8.71 per cent, compared with the previous close of 8.72 per cent.

There was partial devolvement on primary dealers in the new 17-year government bond auction to the tune of Rs 291 crore. The notified amount of auction was Rs 2,000 crore for the bond.