Hitting a three-week low, the rupee ended weaker at 55.05 against the dollar due to weaker euro and domestic equity markets amid concerns over US fiscal cliff resolution.
Breaching the 55-level mark, the Indian unit had plunged to 55.10 in the opening trade from Thursday’s close of 54.85 against the dollar today on the back of growing uncertainty over the US fiscal cliff. Intra-day the rupee has moved between 55.03 to 55.25 range.
The BSE benchmark Sensex was trading down by 1.09 per cent (211 points) at 19,242. Further, the month-end dollar demand from banks and importers weighed on the rupee.
Worried about the delay in the fiscal cliff crisis resolution, investors stayed away from the risky assets leading to a stronger dollar. However, exporters sold dollars around 55.20-25 levels which helped to limit further fall and recover to 55.03 against the dollar.
Concerns over fiscal cliff crisis and month-end dollar demand from importers will continue to put pressure on the rupee.
Call rates and G-Secs
The overnight call money rates ended lower at 8 per cent. The call rates had opened higher at 8.15 per cent from their previous close of 8.05 per cent on Thursday.
The 10-year benchmark 8.15 per cent government security, which matures in 2022, closed higher at Rs 100.04 from its previous close of Rs 99.97, while yields ended marginally lower at 8.14 per cent from 8.15 per cent.