The rupee declined the most among emerging market currencies on Tuesday to end at 60.95 against the dollar as global manufacturing surveys hurt the domestic capital flows.

The weak surveys raised growth concerns and shares on BSE-benchmark Sensex slumped over 430 points (down 1.6 per cent) to close at 26,775.

In addition, month-end dollar demand from importers also hurt the rupee sentiments.

The local unit opened 10 paise weaker at 60.92 as against Monday’s close of 60.82. The unit gained to 60.86 on mild capital inflows after which the global surveys led to heavy outflows dragging the rupee to 61 per dollar.

The rupee is likely to trade with a downward bias ahead of the RBI monetary policy next week amid strengthening dollar, experts say.

Call Rates, G-sec yields up

The interbank call money rate, the rate at which banks borrow short-term funds from one another, ended at 7.60 per cent from a close of 7.20 per cent on Monday.

The price on the 10-year benchmark 8.40 per cent government security, maturing in 2024, fell to Rs 99.53 from Monday’s close of Rs 99.74. The yield on the bond hardened to 8.46 per cent after touching an 11-month high of 8.43 per cent.

Bond prices and yields move in the opposite directions.

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