Paring last week’s gains, the rupee ended weaker at 53.75 due to dollar demand from importers and banks amid weak Asian markets.
The Indian currency had breached the 53-level on Friday to close 69 paise stronger at a two-and-a-half month high of 53.70 against the dollar.
On Monday, the rupee opened marginally lower at 53.74 per dollar. The rupee touched the day’s high of 53.65 a dollar on sustained capital inflows into the domestic equity market. However, it weakened to a low of 53.96 on the back of demand for the American currency from oil and gold importers and banks.
By day’s close, the rupee recovered after trade after a finance ministry official said that the import duty on gold and platinum has been raised to 6 per cent from 4 per cent. This would limit the gold imports which account for the highest dollar demand after oil.
The rupee had strengthened last week on higher capital inflows on the back of the Government's announcement last week to deregulate diesel prices thereby aiding the Government to bring the fiscal deficit within the target of 5.3 per cent of the gross domestic product for the financial year ending March 2013.
Call rates and G-Secs
The inter-bank call money rates closed higher at 8.08 per cent from its previous close of 7.65 per cent. The call money rates opened higher at 8.10 per cent.
The 8.15 per cent government security, which matures in 2022, ended marginally higher at Rs 101.88 (yield: 7.86 per cent) from Friday's close of Rs 101.87 (yield: 7.86 per cent).