Month-end demand for the greenback from oil importers pulled the rupee down to 64.32 against the dollar, an over 100 paise fall from the previous close. The Indian unit had closed at 63.30 on Friday. It opened lower at 63.65 on Monday. However, a few market participants are optimistic about the prospects of the currency unit in the days ahead. According to an RBS report, “The measures taken so far and other impending developments suggest a more stable currency over the next three to four months. We expect USD/INR to grind towards 59 over the next 12 months.”
Intraday, the rupee moved in a wide corridor between a high and low of 63.65 and 64.73, respectively.
Call rates flat, yields harden
The inter-bank call money rate, the rate at which banks borrow from each other for short-term funding, closed flat from Friday’s close at 10.20 per cent. The 7.16 per cent government security, which matures in 2023, closed lower at Rs 92.23 from previous close of Rs 92.70. Yields on the security hardened to 8.34 per cent from previous close of 8.26 per cent.