Rs loses 30 paise on fresh dollar demand

Last Updated: Thu, Dec 20, 2012 20:22 hrs

The rupee on Thursday lost 30 paise to close at 54.85 against the dollar due to fresh demand for the US currency from oil importers, amid some weakness in the local equities.

The local unit opened lower at 54.67 against the dollar from its previous close of 54.55 at the Interbank Foreign Exchange market. It, however, marginally recovered to 54.64 but emergence of dollar demand from importers, mainly oil refiners, and a fall in local equities weighed on the rupee and it fell back to a low of 54.90 before concluding at 54.85, a fall of 30 paise, or 0.55 per cent.

Yesterday, rupee had risen by 30 paise. “The rupee today fell mainly due to fresh dollar demand from oil importers. Thin trading volume on account of upcoming Christmas holidays also weighed on the local unit,” IDBI Bank Head (Treasury) N S Venkatesh said.

Meanwhile, the BSE benchmark Sensex also fell by 22.08 points to 19,453.92. Forex dealers said heavy capital inflows amid a weak dollar abroad, however, restricted the fall in rupee’s value.

Bonds end mixed
Government securities (G-sec) ended mixed on alternate bouts of buying and selling. The 8.33 per cent G-sec maturing in 2026 eased to Rs 100.72 from Rs 100.75 yesterday, while its yield held steady at 8.24 per cent.

Call rates end lower
Call money rates finished lower due to lack of demand from borrowing banks. The rate ended lower at 8.05 per cent from yesterday’s closing level of 8.13 per cent. It moved in a range of 8.20 per cent and 7.90 per cent.

More from Sify: