The rupee dropped to 61.33 against the dollar in morning trade on fresh demand for the US currency from banks and importers due to higher value of the greenback overseas.
The rupee resumed lower at 61.28 per dollar as against the last weekend’s level of 61.09 at the Interbank Foreign Exchange market.
It hovered in a range of 61.15-61.33 per dollar before quoting at 61.21 at 12.32 pm.
Market men believe that the rupee will not sustain above 61 at this point in time, as oil importers and the RBI will immediately buy dollars when they see the domestic unit appreciate. Last week, the domestic unit gained 1.5 per cent against the greenback.
“After seeing the rupee fall to below 68 last year, any gains beyond 61 will make the markets jittery and importers will buy dollars,” a chief dealer of a public sector bank said.
A sudden appreciation of the Indian unit is also seen as detrimental by some analysts, as a stronger rupee will hit export gains.
In New York, the dollar turned broadly higher on last Friday after data showed the US economy in February added far more jobs than expected, providing a more upbeat read on economic growth this year.
The 8.83 per cent 10-year benchmark bond maturing in 2023 declined to Rs 100 from the previous close of Rs 100.09 , while its yield moved-up to 8.82 per cent from 8.81 per cent.
The inter-bank call money rate, the rate at which banks borrow money from each other, opened higher at 8.10 per cent against the previous close of 7.90 per cent.
Source:- thehindubusinessline.com
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