The rupee was trading weak by 26 paise at 62.09 against the dollar at 2.22 p.m. local time.
The rupee shed 30 paise to 62.13 per dollar in the opening trade against the previous close of 61.83 on the back of weakness in the domestic equity market and dollar demand from importers.
The domestic unit is expected to be under pressure as government data showed IIP contracted to 1.8 per cent in October and consumer price inflation (CPI) touched 11.24 per cent mark in November, increasing the expectations of a rate hike by the Reserve Bank of India.
The Federal Open Markets Committee will meet on December 17 and 18 in Washington, when it will announce its intention to either continue with the stimulus programme or begin to wind it down slowly.
RBI has assured that the Indian economy is “relatively” well placed now to handle the tapering, if it were to come soon.
On similar tapering fears in August, the rupee had touched a life-low of 68.80. Subsequently, measures by RBI to attract more dollars and by the government to cut the current account deficit had lifted the rupee.
According to analysts, the Federal Reserve may put off tapering at least for a month more, pending the imminent end of term of Chairman Ben Bernanke in January.
Call rates; G-Secs
The inter-bank call money rate, the rate at which banks borrow from each other to meet their short-term requirements, opened sharply higher at 8.25 per cent from the previous close of 6.85 per cent.
The 10-year benchmark 7.16 per cent government security, which matures in 2023, opened lower at Rs 86.25 from the previous close of Rs 87.42. Yield on the security hardened sharply to 9.26 per cent against the previous close of 9.18 per cent.
The rupee shed 30 paise to 62.13 per dollar in the opening trade against the previous close of 61.83 on the back of weakness in the domestic equity market and dollar demand from importers.
The domestic unit is expected to be under pressure as government data showed IIP contracted to 1.8 per cent in October and consumer price inflation (CPI) touched 11.24 per cent mark in November, increasing the expectations of a rate hike by the Reserve Bank of India.
The Federal Open Markets Committee will meet on December 17 and 18 in Washington, when it will announce its intention to either continue with the stimulus programme or begin to wind it down slowly.
RBI has assured that the Indian economy is “relatively” well placed now to handle the tapering, if it were to come soon.
On similar tapering fears in August, the rupee had touched a life-low of 68.80. Subsequently, measures by RBI to attract more dollars and by the government to cut the current account deficit had lifted the rupee.
According to analysts, the Federal Reserve may put off tapering at least for a month more, pending the imminent end of term of Chairman Ben Bernanke in January.
Call rates; G-Secs
The inter-bank call money rate, the rate at which banks borrow from each other to meet their short-term requirements, opened sharply higher at 8.25 per cent from the previous close of 6.85 per cent.
The 10-year benchmark 7.16 per cent government security, which matures in 2023, opened lower at Rs 86.25 from the previous close of Rs 87.42. Yield on the security hardened sharply to 9.26 per cent against the previous close of 9.18 per cent.
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