The rupee was trading flat at 62.93 against the dollar at 4.15 p.m. local time on mild dollar selling by banks and exporters.
The domestic opened flat at 62.92 against the previous close of 62.93 against the dollar.
But it breached the 63-level to trade at 63.03 per dollar in the morning session on concerns that the US Fed may taper its bond-buying programme earlier-than-expected.
The local currency hovered in the range of 62.85-63.07 levels during the day.
The minutes of the Federal Reserve’s October 29-30 meeting reignited fears that the tapering of the $85-billion monthly bond buying programme is possible in the coming months if the US economy improves as anticipated.
This triggered fears of dollar outflows from the emerging markets, including in India.
According to Fitch Ratings, the spill-over effects of a weak rupee have not significantly hurt India’s creditworthiness, and hence would not trigger any rating action at this point.
Call rates, G-secs
The overnight call money rate, the rate at which banks borrow short-term funds from each other, opened higher at 8.75 per cent from the previous close of 8.70 per cent.
The widely traded 8.28 per cent security, maturing in 2027, opened a tad weak at Rs 93.84 from Rs 93.83. The yield remained flat at 9.06 per cent.
Yield on the 10-year benchmark government security, 7.16 per cent, maturing in 2023, remained flat at 9.07 per cent.
The Finance Ministry had said on Tuesday that further action by RBI could moderate the yields on the bonds.
