The Indian rupee ended marginally weaker at 60.62 against the American currency due to dollar outflows from the equity markets.
The Sensex ended weaker by 56 points (0.25 per cent) at 22,631.60 points.
The Indian unit gained on Friday to close stronger at 60.62 against the dollar on the back of strong dollar inflows from an infrastructure company and the RBI’s government bond auction.
On Monday, the rupee opened 4 paise weaker at 60.66 per dollar and declined to 60.76 on heavy capital outflows as global markets were trading weaker after investors remained wary ahead of the US Federal Reserve’s two-day meet starting Tuesday.
The rupee recovered to 60.43 in the initial trades but pared gains on persistent outflows. The rupee is likely to remain volatile ahead of the upcoming election results on May 16.
Call rate eases; Bond hardens
The overnight call money rate (the rate at which banks borrow money from each other to overcome liquidity mismatches) ended slightly weaker at 8.70 per cent from Friday’s close of 8.75 per cent.
The yield on 10-year benchmark 8.83 per cent bond, maturing in 2023, hardened a tad to 8.85 per cent from its previous close of 8.84 per cent. Prices of the bond were a tad weaker to Rs 99.84 from Rs 99.88. Bond yields and prices move in the opposite direction.