The rupee weakened by 17 paise to end lower at 62.77 on Tuesday against the previous close of 62.60 on month-end dollar demand.
In intra-day trade, the domestic currency touched a low of 62.90 and a high of 62.45 against the dollar.
“The weakness in the domestic stock market was seen putting pressure on the rupee. Globally, the euro was seen coming down against the US dollar after the weak economic data. Slightly negative comments by the President of the European Central Bank were also seen contributing to the weakness in the rupee,” said Abhishek Goenka, Founder and Chief Executive Officer, India Forex Advisors.
According to dealers, the rupee is under pressure after the RBI hiked the repo rate by 25 basis points.
Bond, call rates flat
Yields on the 10-year benchmark 7.16 per cent government bond, which matures in 2023, declined a tad to 8.83 per cent from the previous close of 8.85 per cent. Prices of the 10-year bond remained almost flat at Rs 89.2.
Inter-bank call money rate, the rate at which banks borrow from each other to meet their short-term funding needs, ended flat from the previous close of 9.50 per cent.
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