The rupee today depreciated 20 paise to close at 54.38 in line with decline in local equities following withdrawal of support by DMK to the Congress-led UPA government, even as the Reserve Bank of India (RBI) cut repo rate cut.
Sustained dollar selling by exporters amid firm dollar abroad also kept the rupee under pressure.
Bonds remain bearish
Government bonds remained lower on selling pressure from banks and companies.
The 8.15 per cent government security maturing in 2022 fell to Rs 101.58 from Rs 101.70 previously, while its yield moved up at 7.90 per cent from 7.88 per cent.
Call rates end down
Overnight money rates also ended weak due to lack of demand from borrowing banks amidst ample liquidity in the banking system. The rate finished lower at 7.65 per cent from 7.70 per cent yesterday.