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The rupee closed lower at 54.85 against the American currency due to month-end dollar demand from banks and oil-importers.
The local currency opened lower at 54.75 (previous close: 54.56) against the US dollar as the fiscal cliff problem looms large on the American soil.
President Barack Obama has threatened to veto the Republican “Plan B” of the bill.
If an agreement is not reached before December 31, the country will have to spend more on taxes and face a substantially lower budget spending. This could affect the world economy at large.
Intraday, the rupee moved between a high and low of 54.60 and 54.90, respectively.
A series of “reform” bills, which made their cut in Parliament, has added some confidence to the domestic markets. This augurs well for the future of the Indian currency as there is likelihood of more dollar flowing into the Indian market.
A strong rupee against the dollar can make imports cheaper for the country.
Call rate eases; G-Secs firm
The interbank call rates ended lower at 8.05 per cent from its Wednesday’s close of 8.13 per cent.
The 8.15 per cent benchmark government security, which matures in 2022, closed flat at Wednesday's close of Rs 99.97 (yield: 8.15 per cent).
satyanarayan.iyer@thehindu.co.in
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