Snapping a five-day winning streak, the Indian rupee lost seven paise against the dollar at 61.70 due to fresh demand for the US currency from banks and importers even as strong capital inflows continued. The rupee in early trade at the Interbank Forex Market firmed up to 61.49 on initial selling of dollars by exporters in view of strong equity markets. But all the gain was washed out due to fag-end dollar demand from banks and importers. The local currency dropped to 61.75 before concluding at 61.70.
Bonds slip, call rates end higher
Government bonds (G-Secs) slipped on selling pressure from banks and corporates while, the overnight call money rate ended higher at the money market due to fresh demand from borrowing banks amid tight liquidity in the banking system. The 8.60 per cent government security maturing in 2028 fell to ₹107.12 from ₹107.23 previously, while its yield edged-up to 7.73 per cent from 7.72 per cent. The overnight call money rates ended higher at 7.85 per cent from the previous day’s closing level of 7.75 per cent. It resumed higher at 8.00 and moved in a range of 8.20 per cent and 7.40 per cent.