The rupee ended lower at 61.88 a dollar against the previous close of 61.80 despite better-than-expected trade data numbers released on Wednesday.
The rupee remained highly volatile during the day. “The dollar’s strength against other currencies brought the rupee under pressure but better than anticipated trade data helped pull the currency back,” said S. Srinivasaraghavan, head of treasury at Dhanlaxmi Bank.
The deficit for the month stood at $6.7 billion, the lowest level since March 2011, compared with $10.9 billion in August, Commerce Ministry said on Wednesday. The stock market ended in the green with Sensex closing 266 points up at 20,249 and Nifty closing up by 79 points at 6007 levels. Despite a higher opening of 61.20, the rupee declined to 62.30 levels moving 110 paise in intra-day trade.
“The rupee is expected to move in levels of 61.60 to 62.40 a dollar in the rest of the week,” said Srinivasaraghavan The 7.16 per cent government security, which matures in 2023, ended higher at Rs 91.57 from the previous close of Rs 91.33. The yields softened to 8.45 per cent from 8.49 per cent. Bond yields and prices move in opposite directions.
CALL RATES Higher
The inter-bank call money rate, the rate at which banks borrow from each other to meet their short-term fund requirements, ended higher at 9 per cent against the previous close of 8.95 per cent.