Recovering from initial losses, the rupee on Monday ended 9 paise weaker at 54.62 against the dollar due to a stronger dollar at the Interbank Foreign Exchange Market.

It had closed flat at 54.53 per dollar on Friday.

The domestic unit, which opened 17 paise lower at 54.70, touched an intra-day low of 54.79 due to stronger dollar and weaker domestic equity markets.

However, the rupee strengthened to 54.58 per dollar on the back of inflation numbers that eased at 5.96 per cent for March, the lowest rate in more than three years. This may prompt the Reserve Bank of India to cut key interest rates in the wake of growth concerns.

At day’s close, the BSE benchmark Sensex also recovered 115 points or 0.63 per cent lower at 18,358.

Call rates and G-Secs

The interbank call money rates closed higher at 7.55 per cent from Friday's close of 7.40 per cent. It moved in the 7.25 to 7.65 per cent range during the day.

The 10-year benchmark 8.15 per cent government security, which matures in 2022, ended higher at Rs 102.04 from its previous close of Rs 101.79, while yields declined to 7.83 per cent from 7.86 per cent.

>Beena.parmar@thehindu.co.in

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