The rupee on Wednesday stayed volatile during the day after opening higher at 55.38 to the US dollar gaining 27 paise to end at 55.36 from its previous close. The Reserve Bank rate cut hopes spurred the currency and the Mumbai equity markets.
The domestic currency touched a high of 55.61 against the dollar in intra day’s trade.
“From the short-term perspective, weakness in the rupee is expected to persist in the next two-three months. We expect the currency to test levels around 57 to 57.50,” said Mr. Dinesh Thakkar, Chairman & Managing Director, Angel Broking.
“Though for a brief period in between, we could witness appreciation in the currency to levels around 54 to 53.60 as global leaders get together to chalk a saving plan for the Euro region,” Mr. Thakkar added.
Call Rates and G-Secs
The call money rate lowered at 8.15 per cent after touching a low of 8.0 per cent in the day’s trade. On Tuesday, the call rate improved to 8.25 per cent at day’s close.
The benchmark 8.79 per cent government bond maturing in 2021 closed lower at Rs 102.68 with a higher yield of 8.37 per cent.
The bond rate closed at Rs 102.94 on Tuesday yielding softer at 8.20 per cent.