The rupee was trading a tad weak at 61.95 against the dollar at 11.32 a.m. local time.
The rupee opened marginally weak at 61.97 per dollar against Friday’s close of 61.94 due to increased demand for the US currency from oil importers.
According to forex dealers, fresh demand for the American currency ahead of the interim Budget for 2014-15 mainly put pressure on the rupee but a higher opening in the domestic equity market and the dollar’s weakness against other currencies overseas, capped the rupee’s fall.
The rupee bounced back by 49 paise to close at a three-week high of 61.93 against the US dollar on Friday as the WPI inflation eased significantly to an eight-month low of 5.05 per cent in January from 6.16 per cent in December, providing considerable relief to policymakers battling high inflation and weaker growth rate.
The inter-bank call money rate, the interest rate at which banks borrow money from each other to overcome the short-term liquidity mismatches, opened higher at 8.9 per cent against the previous close of 8.8 per cent.
Yield on the 10-year benchmark 8.83 per cent Government security, maturing in 2023, softened back to 8.8 from 8.81 per cent. Bond prices rose to ₹100.15 from ₹100.11. Bond prices and yields move in the opposite direction.
