Rupee opens weak at 60.20 on month-end dollar demand

MUMBAI : The rupee opened weak by 6 paise at 60.20 per dollar against the previous close of 60.14 at the Interbank Foreign Exchange market today due to month-end dollar demand from oil importers.

Forex dealers said that it is likely to trade range-bound during the week in the absence of any major events. Besides, dollar’s gains against other currencies overseas and a lower opening in the domestic equity market also put pressure on the local unit, the dealers said.

The rupee had weakened by 4 paise to end at nearly a one-week low of 60.14 against the dollar on Monday. Forex market remained closed yesterday on account of 'Id-ulFitr'.

Call rates, bond yields The inter-bank call money rate, the rate at which banks borrow short-term funds from one another to tide over liquidity mismatches, opened higher at 8.55 per cent against the previous close of 8.8 per cent.

Yield on the 10-year benchmark bond 8.4 per cent, maturing in 2024, opened higher at 8.45 per cent from its previous close of 8.43 per cent. Yield on the widely traded 8.83 per cent government bond maturing in 2023 (previous benchmark) hardened to 8.74 per cent from the previous close of 8.7 per cent.

Source : thehindubusinessline.com