The rupee weakened after the early gains to touch 55.36 against the dollar on dollar demand from oil importers.
At 3.07 pm, the domestic unit was trading at 55.44 to the dollar on higher dollar demand.
"The oil bills and dollar demand is making the currency volatile. This is likely to remain in the current week,” said Mr K. Eswar, General Manager, Treasury, Central Bank of India.
A stronger euro and hopes of stimulus measures from the US Federal Reserve led the rupee to open higher at 55.03 from its previous close of 55.14 per US dollar on Tuesday.
“Rupee will see a correction and stabilise at 49-50 levels in three months,” Mr Eswar added.
Call Rates and G-Secs
The interbank call money rates continued to trade steady at 8.1 per cent from yesterday’s close. The call money market rates declined to 8.05 per cent in the early trade.
The 9.15 per cent government bond maturing in 2024 was trading higher at Rs 106.49 (yield: 8.29 per cent) from yesterday's close of Rs 106.43 (yield: 8.30 per cent).
The most traded 8.15 per cent bond maturing in 2022 was trading higher at Rs 100.45 (yield: 8.08 per cent) from its previous close of Rs 100.38 (yield: 8.09 per cent).
