The rupee closed weaker at 54.88 against the dollar on strong demand for the American currency from oil importers and a weaker euro. The Indian unit had closed at 54.78 on Thursday. Despite the gains in the domestic equity markets over the past few days, the rupee has depreciated due to heavy gold imports and rise in global crude prices.
Also, the fear of worsening current account deficit is exerting continuous downward pressure on the rupee, according to economists. Intraday, the rupee moved between a high and low of 54.81 and 55, respectively.
Last Friday, the Indian unit had closed at 54.80
The interbank call money rates closed lower at 7.25 per cent from previous close of 7.30 per cent. The 8.15 per cent government security (G-Sec), which matures in 2022, closed lower at Rs 104.85 from the previous close of Rs 104.94. Yields hardened to 7.40 per cent from the previous close of 7.39 per cent.