Rupee recovers marginally to 62.29 vs dollar

Our Bureau Updated - March 12, 2018 at 09:33 PM.

rupee

After declining to yet another 10-month low of 62.50, the rupee recovered marginally to 62.29 per dollar as the American currency weakened against major global currencies. It had closed at 62.34 on Thursday.

On Friday, the Indian currency lowered to 62.42 in the opening trade, after which it depreciated to 62.50 against the dollar due to heavy sell-off by foreign investors from the domestic market amid concerns in the global economy and dollar demand from oil importing companies.

BSE-benchmark Sensex plunged again by over 250 points (0.91 per cent) to end at 27,350.

However, the market recovered to 62.25 per dollar ahead of the key economic data to be released post trading hours. Government release data on November’s consumer price inflation at 4.38 per cent as compared with 5.52 per cent in October.

While October Index of Industrial Production (IIP) declined to negative at (-)4.2 per cent as against September’s 2.8 per cent.

Market analysts expect the rupee to continue being weighed down by the negative domestic growth data, global macro economy and geopolitical concerns.

Call Rates rise; G-sec yields fall

The overnight call money rates, the interest rates at which banks borrow from each other to overcome liquidity mismatches, ended a tad higher at 8 per cent as against Thursday’s close of 7.90 per cent. Intra-day, it moved in the previously traded range of 7 per cent and 8.15 per cent.

The 10-year benchmark government security (8.40 per cent G-Sec, maturing in 2024) yield dropped to a 1-year low of 7.83 per cent from 7.86 per cent. Yields are currently at their lowest levels since August, 2013.

Published on December 12, 2014 04:43