Snapping five consecutive days of gains, the rupee on Wednesday ended 20 paise weaker at 61.24 against the dollar on demand for dollars from oil companies.
The domestic currency also weakened as data showed that the pace of exports in November slowed, affecting sentiments in the markets. Exports growth in October slowed to 5.9 per cent from 13.5 per cent in the year ago period, government data said.
The rupee had touched a four-month high of 60.84 on Tuesday. It opened weaker by 18 paise at 61.23 against Tuesday’s close of 61.04 due to dollar demand.
According to Abhishek Goenka, Founder and CEO of India Forex Advisors, “Three oil companies have to pay back around $15 billion to the RBI over the next six months, which they used up from the oil swap window opened in August. To pay back the amount, they are expected to buy whenever the conditions are favourable.”
The rupee declined to 61.41 in the morning trades only to recover to 61.22 per dollar.
Call rates, G-Secs flat The inter-bank call money rate, the rate at which banks borrow from each other to meet their short-term requirements, ended flat from the previous close of 7 per cent. The 10-year benchmark 7.16 per cent government security, which matures in 2023, closed flat at Rs 87.45 from Rs 87.46. Yield on the security remained unchanged at 9.17 per cent.