The rupee ended lower by 35 paise at 49.50/51 against the American currency today on fresh dollar demand from banks and importers, despite weakness of the dollar abroad. At the Interbank Foreign Exchange (Forex) market, the rupee resumed steady at 49.15/16 per dollar and traded in the range of 49.15 and 49.52 before settling at 49.50/51, a loss of 0.71 per cent or 35 paise from its previous close.
Fresh dollar demand from banks and importers in view of uncertainty in the currency market mainly affected the rupee value against the dollar, a forex dealer said.
Bonds drop further
Government securities (G-Sec) continued to rule weak on sustained selling pressure from banks and corporates. The 8.79 per cent (G-Sec) maturing in 2021 declined further to Rs 103.42 from Rs 103.67 yesterday, while its yield moved up to 8.27 per cent from 8.23 per cent. The 9.15 per cent (G-Sec) maturing in 2024 dropped to Rs 105.95 from Rs 106.25, while its yield rose to 8.38 per cent from 8.34 per cent. The 7.83 per cent (G-Sec) maturing in 2018 fell further to Rs 97.6575 from Rs 97.90, while its yield firmed up to 8.32 per cent from 8.27 per cent.
Call rates improve further
Call rates reacted downwards at the overnight money market here today due to lack of demand from borrowing banks amid ample liquidity in banking system. The overnight call money rate ended lower at 8.70 per cent from yesterday’s close of 8.80 per cent. It moved in a range of 8.75 per cent and 8.50 per cent.
