Rupee weakens on US Fed taper fears

The rupee fell on Tuesday as the dollar gained after strong US economic data sparked expectations of early tapering of the Federal Reserve stimulus, but a sharp easing in the current account deficit capped wider losses. Data late on Monday showed India's current account deficit narrowed to 1.2 per cent of gross domestic product, the lowest since the June quarter of 2009. The partially convertible rupee closed at 62.36/37 a dollar compared with 62.31/32 on Monday.

Bonds turns bearish
Government securities (G-secs) turned bearish on selling pressure from banks and companies. The 7.16 per cent G-sec maturing in 2023 declined to Rs 88.04 from Rs 88.16 previously, while its yield moved up to 9.07 per cent from 9.05 per cent.

Call rates end high
Call rates ended higher at the overnight market due to good demand from borrowing banks. The rates finished higher at 6.78 per cent from 6.75 per cent on Tuesday.