Rupee closes weaker at 63.29 on dollar demand from state-owned banks
The rupee weakened 4 paise against its previous close even as trade volumes were thin because of year-end holidays
Mumbai: The rupee weakened against the dollar in Tuesday’s trading amid demand for the US currency from state-owned banks, even as trade volumes were thin because of year-end holidays.
The local currency opened at 63.31 per dollar and touched a high and a low of 63.25 and 63.49 a dollar, respectively. The rupee closed at 63.29 a dollar, down 0.07% against its previous close of 63.25.
“There is demand from importers but the main reason for the rupee to move so much is because volumes are thin," said a dealer with a state-owned bank.
The US currencies strength against emerging market currencies has also kept the rupee under pressure lately.
Since the beginning of this year, the rupee has weakened 2.36% against the dollar, while foreign institutional investors have bought $16.36 billion from local equity markets and $26.32 billion from the debt market.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 89.756, down 0.01% from its previous close of 89.77.
India’s benchmark equity index, BSE Sensex, ended at 27,506.46 points, down 0.71%.
The yield on India’s 10-year benchmark bond ended at 7.922% compared with its Monday’s close of 7.956%. Bond yields and prices move in opposite directions.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!