After touching 62 levels against the dollar on Wednesday, the rupee ended at about 8-month low of 61.96 due to capital outflows ahead of the release of US Federal Reserve meeting’s minutes and falling oil prices.
The domestic unit had closed at 61.74 per dollar on Tuesday.
On Wednesday, the unit opened 10 paise weaker at 61.84 at the Interbank Foreign Exchange market.
After gaining slightly to 61.78, the rupee continued to slide to 62 levels led by capital outflows into the domestic equity markets and demand for the American currency from oil importers on account of falling global oil prices.
BSE-benchmark Sensex ended 130 points lower at 28,032.85, weaker by 0.46 per cent over its previous close.
However, ahead of uncertainty, the rupee recovered 4 paise to end at 61.96 per dollar.
The rupee is likely to trade with a downward bias after the US Federal Reserve’s minutes that would be released later on Wednesday.
Call Rates fall; Bonds yields up marginally
The inter-bank call money rate, the rate at which banks borrow short-term funds from one another, ended weaker at 7.60 per cent from Tuesday’s close of 7.85 per cent. Intraday, the call money market moved between 7.10 to 8.25 per cent range.
Yield on the 10-year benchmark 8.40 per cent government security, maturing in 2024, hardened a tad to 8.16 per cent from 8.15 per cent. The price of the bond fell marginally to Rs 101.54 as against a close of Rs 101.61 on Tuesday.