The rupee closed flat at 59.67 against the dollar as demand for the American currency from oil importers weighed on the Indian unit.
The rupee opened at 59.61/$ from the previous close of 59.67.
The rupee has been punished by uncertainty in global markets primarily because of lack of clarity on the US Federal Reserve’s roadmap on gradually reducing its $85 billion a month bond-buying programme, as also by India’s high current account deficit.
The Indian unit remained largely range-bound on Tuesday, trading between 59.78 and 59.47.
“It is likely to depreciate tomorrow further because of the rising interest rate scenario in the US, as such a scenario will dissuade overseas investors to invest in India as the differential decreases,” said a head-dealer with a public sector bank.
Call down, bonds up
The inter-bank call money rate closed lower at 6.80 per cent from previous close of 7.10 per cent.
The 8.15 per cent government security, which matures in 2022, closed higher at Rs 103 from previous close of Rs 102.92. Yields softened a tad to 7.68 per cent from previous close of 7.69 per cent.
The benchmark 7.16 per cent government security, which matures in 2023, closed higher at Rs 97.66 from the previous close of Rs 97.52.
Yields softened to 7.50 per cent from the previous 7.51 per cent.