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The rupee closed weaker at 54.69 against the dollar as the American currency strengthened against major global currencies.
The Indian unit, which closed at 54.61 on Tuesday, opened lower at 54.77 as the dollar index jumped after US retail sales data showed improvement.
The euro also weakened against the American currency. Further, RBI Governor D. Subbarao’s mention that inflation was still high led the market participants to speculate if the central bank might hold policy rates again in its third quarter policy review on January 29.
Intraday, the rupee fell to a low of 54.88 against the dollar. Increased demand for the American currency from banks and importers has also put pressure on the rupee.
Call rates up, bond down
The inter-bank call money rates closed higher at 8.20 per cent from Tuesday’s close of 8.05 per cent.
The 8.15 per cent government security, which matures in 2022, closed at Rs 101.75 (yield: 7.88 per cent) from the previous close of Rs 102.08 (yield: 7.83 per cent).
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