The rupee was trading flat at 60.83 against the dollar at 4.15 p.m. local time.
After opening a tad weak at 60.85 against the previous close of 60.83 per dollar due to increased demand for the American currency from importers amid a weak opening in the domestic equity market, the domestic unit hovered in the range of 60.74 and 60.86 in the afternoon trade.
Forex dealers said besides the dollar’s gains against other currencies overseas, fresh demand from importers for the American unit had put pressure on the rupee.
“The RBI will likely maintain its Rs 58-62 per dollar “range of tolerance” for USD/INR until it is able to build up sufficient FX reserves – close to 10 months’ import cover – which looks unlikely over our forecast horizon,” said Indranil Sen Gupta in a report by Bank of America Merrill Lynch.
Call rates and G-secs
The interbank call money rate, the rate at which banks borrow short-term funds from one another, was trading higher at 8.09 per cent from Friday’s close of 7.75 per cent.
Prices of the 10-year benchmark 8.40 per cent government security, maturing in 2024, were also trading higher at Rs 99.74 from the previous close of Rs 99.62. Yield on the bond further softened to 8.43 per cent from 8.45 per cent.