Rupee weakens on month-end $ demand

The rupee weakened for the first time in five sessions on Thursday as heavy month-end dollar demand from oil refiners and losses in other Asian currencies hurt, but gains in domestic shares prevented a sharper fall. Most Asian currencies weakened versus the dollar with the Thai baht and Philipine peso sliding on disappointing economic data.

The partially convertible rupee closed at 62.41/42 a dollar compared with 62.15/16 on Wednesday. Oil refiners are meeting most of their dollar purchases in markets, and not from a special window provided by the central bank, according to traders.

Bonds turn bearish

Government securities (G-secs) turned bearish on selling pressure from banks and corporates. The 7.16 per cent G-sec maturing in 2023 declined to Rs 88.35 from Rs 88.45 on Wednesday, while its yield inched up to 9.01 per cent from nine per cent. The 8.28 per cent G-sec maturing in 2027 fell to Rs 93.71 from Rs 93.85, while its yield gained to 9.09 per cent from 9.07 per cent.
 
The 8.83 per cent G-sec maturing in 2023 dropped to Rs 100.70 from Rs 100.94, while its yield moved up to 8.72 per cent from 8.69 per cent. The 7.28 per cent G-sec maturing in 2019, the 8.12 per cent G-sec maturing in 2020 and the 8.24 per cent G-sec maturing in 2027 were also lower at Rs 93.46, Rs 96.05 and Rs 94.30, respectively.