The rupee closed weaker at 55.61 against the dollar on Wednesday due to weak equity markets and dollar demand from oil importers. It had closed at 55.38 on Tuesday. The domestic unit, which opened lower at 55.72 to the dollar, recovered to touch an intra-day high of 55.25 on expectation of more dollar inflow after remittances into India from overseas were exempted from service tax. “Dollar selling by foreign banks and Japanese firms strengthened the rupee in the first session,” said a chief dealer of a public sector bank. However, the currency took a beating after a leading public sector bank and oil companies started buying dollars, the dealer added.
Call flat; bonds rise
The interbank call rates ended steady at 8.10 per cent. The call money rates opened at 8.20 per cent, against the previous close of 8.10 per cent.
The most frequently traded 9.15 per cent government bond, which matures in 2024, closed higher at Rs 106.29 (yield: 8.32 per cent) from yesterday’s close of Rs 106.03 (yield: 8.35 per cent).
The benchmark 8.79 per cent bond maturing in 2021 closed at Rs 103.29 (yield: 8.27 per cent) from its previous close of Rs 103.06 (yield: 8.30 per cent).