The rupee was trading weak by 35 paise at 61.85 against the dollar at 4.00 p.m. local time due to strong dollar and heavy dollar buying from banks and importers.
Extending yesterday’s losses, the rupee opened weak at 61.94 against the previous close of 61.50 due to appreciation of the American currency against other foreign currencies.
Increased demand for dollar from importers put pressure on the rupee. The rupee strengthened marginally to 61.78 in the afternoon trade.
Dealers attributed the rupee’s fall to dollar’s gains against the euro overseas but a higher opening in the domestic stock market limited the fall.
The Sensex rose 129.36 points (0.61 per cent) to a record high of 21,293.88 points in the morning trade, surpassing the previous intra-day high of 21,206.77 reached on January 10, 2008, a PTI report said.
“On the Euro zone front, all their economic data, including Germany's consumer climate, retail sales and unemployment rate came out weaker-than-expected making Euro fall to its two-week low against the US dollar,” according to India Forex Advisors.
Call rates and G-secs
The overnight call money rate, rate at which banks borrow from each other for their short-term funding requirements, was trading lower at 8.50 per cent from Thursday’s close of 8.70 per cent.
Yield on the 10-year benchmark government bond 7.16 per cent 2023, further hardened to 8.66 per cent from its previous close of 8.62 per cent on Thursday. Bond prices were trading weak at Rs 90.41 from Rs 90.59.
