The rupee declined further to 55.77 against the dollar on weak euro and Asian markets. It had closed stronger at 55.47 on heavy dollar selling on Wednesday.
The Indian unit opened weaker at 55.69 as the US Fed failed to take decisive steps to support the troubled US economy.
Intra-day, the rupee had moved between a high of 55.65 and a low of 55.96 per dollar.
The dollar strengthened against other currencies after the US Federal Reserve, despite no further monetary stimulus measures, strongly hinted that there could be further easing action at the next meeting in September.
Investors will now eye the European Central Bank which meets later in the day to decide the course of action to support the Euro Zone’s flagging economy.
The rupee has been dented by global sentiment as also by policy inaction by the Indian Government. On Wednesday, the domestic unit had closed at 55.47 against the greenback.
A depreciating rupee makes imports expensive and is considered to be a detriment for an import dependent country like India.
Call rates, G-Secs
The interbank call rates opened unchanged from yesterday’s close of 8.10 per cent. At 2.20 pm, it was trading at 8 per cent.
The 8.15 per cent government bond, which matures in 2022, opened slightly higher at Rs 99.58 (yield: 8.20 per cent) from its previous close of Rs 99.45 (yield: 8.23 per cent) on Wednesday.
