The rupee was trading steady against the dollar after a falling euro and global risk aversion led the rupee to open at 56.10 from the previous close of 55.98.
Global risk assets remained under pressure after ratings agency Moody's downgraded Germany and Netherland's sovereign outlook to negative.
At 1.51 pm, the Indian unit was trading firm at 56.02 against the dollar on mild FII inflows.
“The rupee is likely to stay volatile due to a weak euro and global markets,” said a chief dealer of a public sector bank.
The currency had closed at a more than three-week low on Monday due to global risk aversion as pressure mounted on Greece to exit the Euro Zone. Moody's has also cited an increased chance of Greece leaving the Euro Zone.
Call rates and G-Secs
The interbank call rates were trading steady at 8.05 per cent. The call money market had opened at 8.05 per cent from the previous close of 8 per cent.
The 9.15 per cent government bond maturing in 2024 was trading lower at Rs 106.57 (yield: 8.28 per cent) from Monday’s close of Rs 106.74 (yield: 8.26 per cent).
The 8.15 per cent bond maturing in 2022 was trading marginally lower at Rs 100.53 (yield: 8.06 per cent) from Rs 100.55 (yield: 8.06 per cent) yesterday.
