The rupee recovered to 53.88 against the dollar in the afternoon session on positive Asian markets and firmer euro.
The Indian unit fell 26 paise after opening almost flat at 53.96 against dollar due to a firmer euro and pressure from month-end dollar demand by oil importers. Intra-day, so far, it moved between 53.88 and 54.30 range.
It had closed at 53.97 on Tuesday, recovering from a five-week low to end the session with mild gains on the back of a falling dollar.
However, the outlook for the local currency remains weak after the RBI left key interest rates unchanged in its second quarter monetary policy.
The central bank has revised its inflation and growth estimates flagging concerns on worsening current account deficit.
At 2.41 pm, the Indian currency was trading at 53.90 per US dollar. Month-end demand for dollar by oil importers is likely to put pressure during the day.
Call Rates and G-Secs
The overnight call money rates were trading a tad higher at 8.08 per cent. The call money market opened higher at 8.10 per cent from Tuesday’s close of 8.05 per cent.
The 10-year benchmark 8.15 per cent government security, which matures in 2022, was trading higher at Rs 99.63 (yield: 8.20 per cent) from its previous close of Rs 99.17 (yield: 8.18 per cent) on Tuesday.
