The rupee edged lower to end 8 paise weaker at 61.63 against the dollar amid a strengthening dollar and positive domestic equity market.
The domestic unit fell 11 paise in the opening trade at 61.66 as against the previous close of 61.55 on Friday due to demand for the US currency from importers. Last week, the rupee had gained 0.58 per cent against the American currency.
According to forex dealers, dollar’s gains against other currencies overseas put pressure on the rupee. Thereafter it recovered to 61.54 on capital inflows into the debt market.
However, a stronger American dollar led the rupee to 61.66. During the day so far, the rupee was trading in a narrow range of 61.54 to 61.66 per dollar at the Interbank Foreign Exchange market.
The domestic equity market ended stronger thereby limiting the losses for the Indian currency. BSE-benchmark Sensex ended higher by 141.43 points (0.67 per cent) with Sensex trading at 21,205.05 points at day’s close.
Call rates weak, bond yields soften
The inter-bank call money rate, the rate at which banks borrow short-term money from each other, ended weaker at 8.55 per cent from a close of 8.85 per cent on Friday.
Higher debt inflows helped the yield on the benchmark 8.83 per cent government bond, maturing in 2023, to soften sharply to 8.51 per cent from 8.63 per cent. The price jumped to close at Rs 102.04 from Friday’s close of Rs 101.31.