Month-end dollar demand from importers is keeping the rupee under pressure. The rupee was trading marginally weaker in afternoon trades.
At 2:10PM the rupee was trading at Rs 66.68 compared with previous close of Rs 66.60. The rupee had opened at Rs 67.00 per dollar and it has so far weakened to Rs 67.43.
Yesterday the rupee recorded its biggest ever recovery since October 22, 1987 as the Reserve Bank of India (RBI) opened the foreign exchange swap window to meet the daily dollar requirements of three public sector oil marketing companies (OMCs).
Besides that RBI also sold dollars heavily through state-run banks in the last few hours of trading.
Meanwhile, government bond yields rose tracking the weak rupee and due to supply of government bond due to today's auction for a notified amount of R s 17,000 crore.. The yield on the 10-year benchmark government bond was trading at 8.84% compared with previous close of 8.77%.