The rupee closed flat at Wednesday’s close of 54.53 against the dollar as a sharp fall in the domestic equity markets erased the early gains in the Indian currency.
The Indian unit opened at a high of 54.41 against the dollar. However, a weak revenue outlook by IT major, Infosys, triggered the fall in the rupee.
Even a better-than-expected factory output data and a slightly softer consumer inflation data did little to assuage currency markets.
“The early morning news of LIC selling its stake in Infosys led to a sell-off in the equity markets, thereby putting pressure on the rupee.
“Although, CPI eased in March and IIP continued to be in the positive territory, rupee did not react to this data,” India Forex Advisors said.
Currency markets were closed on Thursday for Gudi Padwa and other festivals.
Call rates, G-Secs
The interbank call money rates closed lower at 7.40 per cent from previous close of 7.85 per cent.
The 8.15 per cent government security, which matures in 2022, ended higher at Rs 101.79 from previous close of Rs 101.59. Yields softened to 7.86 per cent from previous close of 7.89 per cent.