Rupee weakens to 60.10 on sustained dollar demand

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June 16, 2014

Surging oil prices on concerns of disruption in supplies due to violence in Iraq has weighed on the domestic unit; Iraq being the second-largest oil and petroleum exporting country

June 16, 2014

Surging oil prices on concerns of disruption in supplies due to violence in Iraq has weighed on the domestic unit; Iraq being the second-largest oil and petroleum exporting country

Mumbai: The rupee fell below the 60-level against the American currency after a gap of over one month by dropping 33 paise to 60.10 on sustained dollar demand from importers amid rise in crude oil prices.

The local currency moved in a range of 59.84 and 60.24 per dollar during the afternoon trade.

It had last traded at 60.05 on May 12, 2014.

The rupee slipped 8 paise to 59.85 per dollar in the opening trade against the previous close of 59.77 on the back of high dollar demand from importers.

Surging oil prices on concerns of disruption in supplies due to violence in Iraq has weighed on the domestic unit. Iraq is the second-largest oil and petroleum exporting country.

The dollar’s gain against a basket of currencies overseas and a lower opening in the domestic equity market also put pressure on the local unit, forex dealers said.

Crude oil prices rose to nine-month high in Asian trade today as investors kept a wary eye on the worsening crisis in Iraq, where insurgents were advancing towards capital Baghdad.

US benchmark West Texas Intermediate for July delivery jumped 35 cents to $107.26 a barrel in late-morning trade.

Meanwhile, the benchmark BSE Sensex dropped 80.77 points or 0.32 per cent to 25,147.40 at 11.20 a.m. local time.

Call rates, bond yields

The overnight call money rate (the rate at which banks borrow money from each other to overcome short-term liquidity mismatches) opened higher at 8.70 per cent from 8.75 per cent.

The 8.83 per cent benchmark bond maturing in 2023 declined to Rs 101.40 from the previous close of Rs 101.48, while its yield hardened to 8.60 per cent from 8.59 per cent previously.

Bond yields and prices move in opposite direction.


Courtesy: PTI