The rupee recovered to 55.98 against the dollar in the afternoon trade. But it continues to remain volatile.
The Indian currency opened lower at 56.15 due to a weak euro and Asian markets as the European Central Bank (ECB) and the US Federal Reserve failed to take any action on monetary easing.
Intra-day so far, the rupee has moved in the range of 56.18 to 55.97. The domestic unit had closed weaker at 55.85 on Thursday.
Hopes of bold actions from the ECB with measures for Spain and Italy’s increasing borrowing costs had run high after the ECB President last week had vowed to do “whatever it takes to preserve the euro’’.
Call rates and G-Secs
The overnight call rates were trading steady at 8 per cent after opening at 8.05 per cent. It had closed at 8 per cent yesterday.
The 8.15 per cent government security, which matures in 2022, was trading lower at Rs 99.35 (yield: 8.24 per cent) from Rs 99.51 (yield: 8.22 per cent) on Thursday.
