Rupee ends lower at 55.33 on dollar buying

Beena Parmar Updated - July 20, 2012 at 05:59 PM.

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High dollar buying by nationalised banks and a weaker euro led the rupee to close at an intra-day low of 55.33 against the greenback.

The domestic unit that had opened weaker at 55.28 from yesterday’s close of 55.12 against the dollar, recovered in the late morning trade to touch 55.08. However, a weaker euro did not help the rupee sustain the gains.

“The rupee gained on bond auction which brought some FII inflows in the market. However, it pared the gains on a weaker euro and dollar buying by nationalised banks,” said a chief dealer of a public sector bank.

“With a movement of 21 paise, the market is very narrow as the currency is reacting to sentiments,” the dealer added.

Traders expect the rupee to stay volatile in the week ahead.

Call rates and G-Secs

The interbank call rates ended lower at 7.95 per cent from a close of 8 per cent on Friday. The call money market had opened higher at 8.10 per cent.

With bond auction today, the widely traded 8.15 per cent government security maturing in 2022 ended slightly higher at Rs 100.49 (yield: 8.07 per cent) from a close of Rs 100.42 (yield: 8.08 per cent) on Thursday.

The 9.15 per cent security maturing in 2024 closed higher at Rs 106.55 (yield: 8.28 per cent) from its previous close of 106.43 (8.30 per cent).

Published on July 20, 2012 04:30