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The rupee inched again towards the 56 a US dollar mark before closing the day at 55.67.
The domestic currency, which touched an all time low last week, touched an intra-day low of 55.86 a dollar.
The rupee has been highly volatile as higher demand for the dollar has eroded its attractiveness, along with many other currencies across the world. The Reserve Bank of India (RBI) had taken some measures to arrest the local unit’s slide, but it has not had the desired effect.
Investor sentiment remains guarded as many government policies lie in limbo. “The government needs to get its act together and focus on improving investor sentiment by spending on infrastructure and structural issues,” said a senior official of a public sector bank. “There is so little that the RBI can do. It (rupee depreciation) is like a cancer, giving it metacin will not solve the problem.”
Call rates, G-Sec down
Call rates closed at 8.05 per cent. It touched an intraday high of 8.20 per cent.
The benchmark 8.79 per cent 2021 government bond closed at Rs 101.73. The yield at this rate is 8.51 per cent.
satyanarayan.iyer@thehindu.co.in
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