Rupee ends at 11 month low of 62.94 a dollar…


The rupee slipped to an 11-month low of 62.94 against the dollar on Monday due to heavy dollar demand and capital outflows from the domestic equity markets. The rupee fell to its lowest since January 27 this year marking the sharpest intra-day fall of 50 paise since August last year.
The domestic unit had closed at 62.29 on Friday.

Monday, it opened at 62.51 per dollar weighed by the negative IIP growth data released on Friday post market hours. It gained a tad to 62.45 but declined sharply to 62.95 in the late trading session.

Heavy dollar demand from oil marketing companies and sell-off by foreign investors booking profits as the accounting year comes to a close, a dealer said. Weak global economic scenario and weaker domestic growth data is likely to weigh on the rupee.

The overnight call money rates, the interest rates at which banks borrow from each other to overcome liquidity mismatches, ended flat from the previous close of 8 per cent on Friday. Intra-day, it moved in the previously traded range of 7.50 per cent and 8.40 per cent.

The 10-year benchmark government security (8.40 per cent G-Sec, maturing in 2024) yield ended flat from Friday’s close of 7.83 per cent, which was at a 1-year low. The prices ended almost flat at Rs 103.76 from Rs 103.78.

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