After opening higher at 55.40 against the dollar on Tuesday, the rupee was trading volatile on the back of month-end dollar demand and positive domestic equity markets. It had closed flat at 55.48 per dollar on Monday.
At 4.12 pm, the domestic unit was trading higher at 53.39 per dollar while touching an intra-day low of 55.62 and a high of 53.31.
The euro had steadied in early trade in Asia after falling to more than one-week low against the dollar overnight due to persistent worries on Spain's debt and weak German business growth data.
BSE benchmark Sensex ended positive, up 21 points, on the back of continued optimism on reform measures announced by the government last week.
However, rating agency Standard and Poor’s on Monday had lowered India's growth forecast to 5.5 per cent, adding to the rupee woes.
Further, month-end dollar demand from oil importers is likely to put pressure on the rupee this week.
Call rates, G-Secs
The overnight call money rates opened higher at 8.10 per cent from the previous close of 8.05 per cent. Intra-day, the rates moved in the range 7.95 to 8.1 per cent in the morning trade. Currently, the call money rates were trading at 8.05 per cent.
The 10-year benchmark 8.15 per cent government bond maturing in 2022 was trading higher at Rs 100.01 (yield: 8.14 per cent) from a close of Rs 99.95 (yield: 8.16 per cent) on Monday.
