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The rupee was trading a tad weak at 61.87 at 4.05 pm local time at the Interbank Foreign Exchange market on sustained dollar demand from banks and importers and weak domestic equity market.
After opening weak by 6 paise at 61.89 per against the previous close of 61.83, the domestic unit hovered in the range of 61.84 and 61.91 in the afternoon trade.
Forex dealers said besides dollar’s gains against other currencies in the global market, increased demand for the American unit from importers and a weak equity market, contributed to the rupee’s fall.
Besides, widening current account deficit to $10.1 billion or 2.1 per cent of GDP in July-September quarter of this fiscal, up from 1.2 per cent a year-ago, also weighed on the rupee sentiment.
The rupee had fallen from its two-week high and ended 6 paise down at 61.83 against the greenback in yesterday’s trade on fresh dollar demand from importers.
Bonds rise
The benchmark 10-year bond yield was down 2 bps at 7.90 per cent against the previous close of 7.92 per cent. The slump in global oil prices reinforced expectation of rate cut early next year.
Bond yields and their prices are inversely related.
The yield moved in a tight band of 1-2 bps.
Further gains appeared unlikely ahead of inflation data on Friday.
Yield fell to 7.89 per cent, a level last seen on July 15, 2013.
The 10-year bond yield is seen in 7.87-7.91 per cent band until close.
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