MUMBAI: The rupee weakened on Tuesday to 48.55 against the dollar at 12 noon as some offshore-related month -end dollar demand from oil refiners
and importers weighed, but traders said a positive start in the stock market could help the local unit.
This level is weaker than its Monday close of 48.41. Dealers said that the rupee could trade between 48.20 and 48.80 levels on Tuesday, but volumes would continue to remain low.
One-month offshore non-deliverable forward contracts were quoting at 48.89, weaker than the onshore spot rate, indicating a bearish near-term outlook.
Bond rally continues with 10-year bond yield falling to 5.41% against yesterdays close of 5.55%. The yield at 5.41% is the lowest in the in the past several years, indicating a new high for bonds. The rally in the bonds could be on expactation of a rate cut.
Indian share benchmark BSE sensex were trading flat at 12 noon on Tuesday at 9534, although they were trading much higher earlier helped by expectations of a stimulus package to boost the flagging economy.
Liquidity was comfortable with call rates trading at 5% at 12 noon, levels much lower than Monday.
