The rupee slumped to a near two month low to close at 54.60 against the dollar as the uncertainty over US Presidential race led harried foreign investors to buy dollars to take back home.
The local unit slumped sharply in the opening trade to 54.11 (previous close: 53.81) as global risks persisted in the short-term.
The US payroll data released late on Friday showed that the country added more jobs in October and revised upwards its numbers for August and September. An improving job market helped the dollar to appreciate against major global currencies.
The Indian markets had seen highest yearly inflow from foreign institutional investors in October. It will be anticipating more such bounties from overseas investors.
The US presidential elections slated to be held tomorrow and the uncertainty associated with it is likely to keep up the pressure on the Indian unit.
The rupee had appreciated nearly 8 per cent in September after the government announced measures that cheered the markets. However, much needs to be done to translate the announcements into actions.
On Sunday, the ruling Congress party’s top brass joined hands at a public rally to allay apprehensions that the ‘reform’ measures will have adverse impact for the common man and vowed to stay course on its decisions. However, this has failed to mollify investors.
Call rates, G-Secs
The inter bank call rates closed higher at 8.05 per cent from previous close of 7.95 per cent on Friday.
The 8.15 per cent government security, maturing in 2022, closed almost steady at Rs 99.69 compared with Friday’s close of Rs 99.67. Yields at both rates remained unchanged at 8.19 per cent.