Thursday 21 November 2013

Rupee weakens to 62.85 in early trade

The rupee weakened by 27 paise to 62.85 against the previous close of 62.58 per dollar in early trade at the Interbank Foreign Exchange market today due to appreciation of the American currency against other currencies overseas.

Dealers attributed the rupee’s fall to dollar’s gains against other currencies overseas after minutes from the Federal Reserve’s October meeting signalled that the policymakers were considering cutting its stimulus programme in the coming months.

They said a weak opening in the domestic equity market too put pressure on the rupee.

Call rates, G-Secs

The overnight call money rate, the rate at which banks borrow short-term funds from each other, opened higher at 8.80 per cent against Tuesday’s close of 8.73 per cent.

Yield on the widely traded 8.28 per cent security, maturing in 2027, hardened to 9.07 from the previous close of 9.02 per cent. Bonds opened higher at Rs 93.75 against Rs 94.15.

Yield on the 10-year benchmark government security, 7.16 per cent maturing in 2023, hardened a tad to 9.09 per cent from 9.02 per cent.

Finance Minister P. Chidambaram had said on Tuesday that the rise in interest rate in G-Secs was temporary and that some measures by RBI should moderate the yields.

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