15-Oct-2013
The rupee ended 30 paise weaker at 61.85 against the dollar due to demand for the American currency from banks and importers, continued impact of weaker inflation data and uncertainty in the US.
The domestic unit opened 20 paise higher at 61.35 against the previous close of 61.55 on the back of firm domestic equity market. However, dollar demand and capital outflows pushed the rupee to 61.93 per dollar during the day.
The expectation of an interest rate hike by the central bank in its second quarter monetary policy on October 29 rose after the September wholesale price index-based inflation data on Monday was reported higher at 6.46 per cent.
Further, investors remained cautious ahead of the US government’s deadline on Thursday to reach a deal on $16.7 trillion debt-ceiling. Both the factors weighed on the rupee.
In addition, BSE-benchmark Sensex ended 59.92 points weaker (0.29 per cent) at 20,547.62 points at day’s close.
Investors will watch out if the US government is able to agree on the debt ceiling deal by Thursday.
The foreign exchange market will remain closed on Wednesday.
The inter-bank call money rate, the rate at which banks borrow from each other to meet their short-term fund requirements, closed a tad higher at 9 per cent against Monday’s close of 8.95 per cent.
The 7.16 per cent government security, which matures in 2023, ended lower at Rs 90.35 against the previous close of Rs 90.86. The yields hardened to 8.66 per cent from 8.57 per cent. Bond yields and prices move in opposite directions.
Source:- thehindubusinessline.com
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