The rupee was trading weak by 20 paise at 62.00 against the dollar at 4.05 p.m. local time.
The rupee shed 5 paise to 61.85 per dollar in the opening trade on Thursday against Tuesday’s close of 61.80 due to month-end dollar demand.
Foreign investors have been looking at lucrative investment destinations amid global slowdown. In December, FII investments in equity and debt market were worth more than $3 billion.
Easing of norms for FPIs
To attract more investment in India, the market regulator is seen easing some of the rules for FPIs (Foreign Portfolio Investors) as well.
It has been decided that all categories of such investors would be given the same tax treatment as FIIs.
These entities include public financial institutions, banks, CBDT authorised issuers, infrastructure debt funds — NBFCs, RBI and NHB-registered NBFCs/HFCs and entities that have listed their shares/debentures on stock exchanges for at least three years.
Call rates, G-Secs
The inter-bank call money rate, the rate at which banks borrow short-term funds from each other, opened higher at 8.85 per cent against the previous close of 8.7 per cent.
The widely traded 8.83 per cent government security, which matures in 2023, opened lower at Rs 99.67 from the previous close of Rs 99.75.
Yields on the security hardened to 8.87 per cent from the previous close of 8.86 per cent. Bond prices and yields move in the opposite direction.
