Rupee down 23 paise on dollar selling, weak equities

Forex dealers said, however, some capital inflows and weak dollar overseas cushioned rupee's fall to some extent

Falling for the first time in three days, the rupee on Tuesday lost 23 paise to end at 54.10, due to month-end dollar demand and a steep fall in local equities.

The local currency commenced lower at 54.03 a dollar from yesterday’s close of 53.86 at the Interbank Foreign Exchange market. Later, it moved in a tight range of 54.00-54.22. In the last two sessions, it gained 87 paise or 1.60 per cent.

Bond rates down
Government bonds declined on selling pressure from banks and companies. The 8.15 per cent government security maturing in 2022 slipped to Rs 102.16 from Rs 102.28 yesterday, while its yield moved up at 7.82 per cent from 7.80 per cent.

The 8.33 per cent government security maturing in 2026 dropped to Rs 103.43 from Rs 103.54, while its yield went up to 7.91 per cent from 7.89 per cent.

Call rates decline
Overnight rates ended weak due to lack of demand from borrowing banks. The rate finished lower at 7.75 per cent from 7.85 per cent yesterday.