The rupee was trading weak by 30 paise at 61.34 against the dollar at 12.42 p.m. local time on fresh demand for dollar from banks and importers amid weak domestic equity market.
The rupee opened weak by 18 paise at 61.23 per dollar against the previous close of 61.04.
The domestic unit hovered in the range of 61.22-61.41 in the morning session.
Treasury heads expect the rupee to remain range-bound till the next RBI monetary policy on December 18.
According to Abhishek Goenka, Founder and CEO of India Forex Advisors, three oil companies have to pay back around $15 billion to RBI over the next six months, which they used up from the oil swap window opened in August. To pay back the amount, OMCs are expected to buy whenever the conditions are favourable.
Call rates, G-Secs
The inter-bank call money rate, the rate at which banks borrow from each other to meet their short-term requirements, opened flat from the previous close of 7.80 per cent.
The 10-year benchmark 7.16 per cent government security, which matures in 2023, fell to Rs 87.40 from the previous close of Rs 87.46. Yield on the security softened to 9.18 per cent from 9.17 per cent.
Yields on widely traded 8.83 per cent government security (also maturing in 2023) softened to 8.83 per cent from 8.9 per cent.
Analysts expect the yields to stay at elevated levels for sometime now as the Government is buying back short-term securities and issuing long-term ones. High bond yields will have a negative impact on banks’ G-secs portfolio.
