Rupee falls to 55.83 in intra-day trade

The rupee fell further to 55.83 against the dollar at 1.30 pm local time on heavy buying of the US currency by oil importers.

The local unit opened lower at 55.70 against the dollar. On Friday, the local unit had closed at 55.33 on heavy dollar buying by nationalised banks and also a weaker euro.

With the Presidential polls out of the way, marketmen would be expecting some reform initiatives by the government.

The next big event, the quarterly policy review by the Reserve Bank on July 31, is also keenly watched by currency dealers. However, there are little hopes of any policy rate cuts by the central bank, given the persistently high inflation.

The month-end demand for dollar from oil importers will also put strain on the rupee through the week.

Call rates and G-Secs

The interbank call rates, which had closed at 7.95 per cent, opened slightly higher at 8.05 per cent. At 1.30 pm, the rates were trading at 7.9 per cent.

The widely traded, 9.15 per cent government security, maturing in 2024, was trading at Rs 106.72 (yield: 8.26 per cent) at 1.30 pm. It opened at Rs 106.60 (yield: 8.27 per cent). It had closed at Rs 106.55 (yield: 8.28 per cent) on Friday.

The 8.15 per cent government security, which matures in 2022, was trading at Rs 100.61. It opened higher at Rs 100.65. Yield at both rates were 8.05 per cent. It had closed at Rs 100.49 (yield: 8.07 per cent).