The rupee slipped 6 paise on Thursday to close at 53.22 against the dollar after the Government projected a worse than expected advance estimate for GDP at 5 per cent.
Yesterday, the Indian unit had slipped from near four-month high to close three paise down at 53.16.
On Thursday, it opened marginally higher at 53.13 against the dollar and intra-day the rupee fell to 53.31 after touching a high of 53.07 per dollar in the morning trade.
The 5 per cent estimate by the Central Statistical Organisation (CSO) is lower than the 5.5 per cent estimated by the Reserve Bank of India in its recent monetary policy review last month.
If this estimate were to turn out to be the final number, then it would be the slowest GDP growth in the last decade. This declined the capital flows into the markets weakening the domestic unit. However, inflows from the NTPC share sale limited the losses.
Investors will watch out for inflows from other upcoming share sales of MMTC and SAIL among others that may further boost the rupee.
Call, bond rates flat
The inter-bank call money market closed lower at 7.50 per cent from its previous close of 7.90 per cent. It had opened at 7.85 per cent.
The 10-year benchmark 8.15 per cent government security, which matures in 2022, ended higher at Rs 101.76 from Wednesday’s close of Rs 101.56, while the yields dropped to 7.87 per cent from 7.90 per cent.
The widely traded 8.20 per cent security, which matures in 2025, shot up to Rs 101.98 from a close of Rs 101.65, while yields edged down to 7.94 per cent from 7.99 per cent on Wednesday.