The rupee recovered marginally to 62.55 against the dollar in the afternoon trading session after declining to 62.71 in the early trade.
The rupee opened a tad up at 62.35 per dollar against the previous close of 62.39.However, it declined to 62.71 per dollar in the early trade due to dollar demand from banks and importers.
At 3.20 p.m., the Indian currency was trading weak by 17 paise at 62.56 at the Interbank Foreign Exchange market.
On Wednesday, the domestic unit fell sharply by 76 paise on sustained dollar demand amid weakness in the domestic equity market.
The BSE-benchmark Sensex was trading down by 65 points (0.3 per cent) at 20,830 points.
Capital outflows and dollar demand are adding to the rupee woes. In addition, expectation that RBI may roll back the special forex swap window for oil marketing companies has put pressure on the domestic unit. The rollback may reduce the flow of the American currency into the market.
Call rates, G-secs
The overnight call money rates were trading down at 8.12 per cent against the previous close of 8.75 per cent.
Yield on the 10-year benchmark 7.16 per cent 2023 government bond hardened to 8.83 per cent from its Wednesday’s close of 8.73 per cent. Bond prices were down at Rs 89.34 from Rs 89.44.
