The rupee today ended weaker at 55.69 against the dollar from Friday’s close of 55.50 due to demand for dollars from oil importers and the American currency gaining ground against the euro. The Indian unit, which opened at 55.57 against the dollar, touched a low of 55.72 and a high of 55.53 per dollar in intra-day trades.
The month-end dollar demand from oil importers weakened the rupee. Further, weak equity markets and dollar’s rise against the euro on increased hopes of monetary easing from the US Federal Reserve impacted the rupee. BSE-benchmark Sensex fell by 104.40 or 0.59 per cent on Monday. The Fed Chairman said “there is scope for further action by the Fed to ease financial conditions” in a letter to a US House panel. The chairman is likely to make a statement on the policy on Friday.
In addition, the Reserve Bank of India has also maintained its hawkish stance on policy rates in its annual report released last week, leaving less scope for rate cuts in the next monetary policy. The overnight call money rates ended higher at 8 per cent from Friday’s close of 7.95 per cent. Call money traded in the 7 to 8.05 per cent range. The benchmark 10-year 8.15 per cent government security maturing in 2022 climbed higher to Rs 99.74 (yield: 8.18 per cent) from its previous close of Rs 99.59 (yield: 8.20 per cent) on Friday.