Rupee Weakens By 32 Paise To 60.21

The rupee snapped its two-day gains against the American currency by slipping 32 paise to 60.21 per dollar on renewed dollar demand from banks and importers in view of firm dollar in the overseas market.

However, the fall in rupee value against the dollar was restricted due to persistent foreign capital inflows into the equity market.

The rupee opened weak at 59.93 per dollar against the previous close of 59.89 per dollar at the Interbank Foreign Exchange (Forex) market. It moved in a range of 59.83-60.27 per dollar during the afternoon trade.

Market participants will be keenly watching PMI numbers scheduled to be released today.

Abhishek Goenka, Founder and CEO of India Forex Advisors, said: "The Indian rupee was seen retreating after nudging towards its highest levels in eight months as importers rushed in to buy dollars, while intervention by the central bank also seemed a plausible reason giving support to the domestic currency. "

In the New York market, the dollar rose against the euro yesterday after the US private sector added the most jobs in three months, setting the stage for Friday’s broader read on employment and its implications for rate hikes next year.

Call rates, bonds

The overnight call money rate, interest rate at which banks borrow money from each other to overcome short-term liquidity mismatches, opened higher at 9 per cent against the previous close of 8.15 per cent

The yield on 10-year benchmark 8.83 per cent government bond, maturing in 2023, opened flat from the previous close of 8.96 per cent.

Source : thehindubusinessline.com