The rupee ended lower at 54.33 against the dollar as oil-related dollar demand weighed on the Indian unit.

The offer-for-sale (OFS) by the government in SAIL helped cap the rupee’s fall. The 5.82 per cent stake sale in the steelmaker garnered good response from the market with the OFS achieving full subscription.

The Indian unit opened slightly lower at 54.32 (previous close: 54.28). However, it quickly recovered to 54.26 in early trades on capital inflows on account of the stake sale.

A wide current account deficit (CAD) and inadequate inflows to finance the CAD continues to exert downward pressure on the rupee.

The dollar index gained against a basket of currencies, as per data available before close of local currency markets. The index, currently trading at 82.74, has gained 3.77 per cent in this calendar year so far.

The euro was trading almost steady from the previous close at around 1.29 to the US currency.

“Globally, the market still awaits the decision over Cyprus bailout. Any positive news could improve the sentiment for a while,” said Mr. Abhishek Goenka, Founder & CEO, India Forex Advisors.

Call Rates, G-Sec

The interbank call money rates closed sharply lower at 7.40 per cent from the previous close of 7.60 per cent amid higher liquidity in the system towards the financial year end.

The 8.15 per cent government security, which matures in 2022, fell sharply to close at Rs 101.19 from previous close of Rs 101.38. The yields hardened to 7.96 per cent from previous close of 7.93 per cent.

satyanarayan.iyer@thehindu.co.in

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