The rupee ended stronger at 55 against the dollar on the back of capital inflows into the equity markets. On Monday, it had closed at a month low of 55.23.

The rupee opened higher at 55.10 due to stronger Asian markets. However, ratings aganecy Fitch its negative outlook on the country’s ratings, weakening the unit.

In addition, renewed dollar demand from banks and importers and weaker domestic equity markets pulled the rupee to a low of 55.40.

However, the rupee recovered to 54.99 levels on the Interbank Foreign Exchange Market.

Forex dealers expect dollar demand from oil importers and slowing growth concerns will continue to impact the rupee.

Though, analysts expect that a likely cut in key interest rates by the Reserve Bank of India in its third quarter monetary policy review may support the Indian currency.

Call rates, G-secs

The inter-bank call money rates closed higher at 8.1 per cent from its previous close of 8.05 per cent on Monday. Intra-day, it moved in the 7.90 to 8.15 per cent range.

The 8.15 per cent Government security, which matures in 2022, ended marginally lower at Rs 101.58 from a close of Rs 101.63 on Monday, while yields remained almost unchanged at 7.9 per cent.

>beena.parmar@thehindu.co.in

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