The rupee closed weaker at 54.37 against the dollar as oil importers rushed to cover their month end demand in a week interspersed by local holidays.
The Indian unit, which closed at 54.17 on Monday, opened at 54.37 against the American currency.
The domestic currency markets will remain closed on March 27 on account of Holi festival.
Also, uncertainty of Cyprus’ bailout success cast doubts over sustained strength of the euro. A weak euro had a sentimental rub off on the Indian unit, an analyst said.
Intraday, the rupee moved between a high and low of 54.25 and 54.41 respectively.
“The Indian rupee was seen weakening on the back of strong dollar index and the weak Euro in the latter session. The increasing concern over Cyprus bailout is seen drenching the confidence of the investors,” said Abhishek Goenka, Founder & CEO, India Forex Advisors.
Call rates, G-Secs
Amid very tight liquidity on a thin trading day, the interbank call money rates touched 9 per cent in intra-day trade. The call rates finally settled higher at 7.80 per cent from previous close of 7.75 per cent.
The 8.15 per cent government security, which matures 2022, closed lower at Rs 101 from previous close of Rs 101.28. Yields hardened sharply to 7.99 per cent from Monday’s close of 7.94 per cent.
> satyanarayan.iyer@thehindu.co.in
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