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The rupee closed lower at 55.64 against the dollar as risk-averse investors took to buying more dollars, even as uncertainty prevailed over the US Fed’s decision to continue with the fiscal stimulus programme in the foreseeable future.
A continuation of stimulus implies that the US economy is still not out of the woods.
The Indian unit has been under stress despite high global liquidity. The US currency has gained against most of the world’s major currencies over the past week. Also, month-end demand from oil importers has pressurised the Indian unit.
The domestic unit opened weaker at 55.63 against the dollar on Friday against the previous close of 55.59.
Intra-day, the rupee moved between a high and low of 55.44 and 55.76 respectively.
The Indian unit depreciated by 1.3 per cent in the week.
Call rates, G-Sec
The inter-bank call money rates closed slightly higher at 7.35 per cent from the previous close of 7.30 per cent.
The 8.15 per cent government security (G-Sec), which matures in 2022, closed higher at Rs 105.27 from the previous close of Rs 105. Yields softened to 7.34 per cent from previous close of 7.38 per cent.
satyanarayan.iyer@thehindu.co.in
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