Indian Rupee trading weak at 62.65/dollar

indian-currency-thousand-rupee-note-thumb14137119New Delhi: The rupee was trading weak by 15 paise at 62.65 against the dollar at 2.42 p.m. local time.The rupee weakened by 50 paise to 63 per dollar on increased buying of the American currency by banks and corporates. The Indian unit had closed at 62.50 on Friday. The Government is expected to release the current account deficit data for the April-June quarter today.The numbers will be watched closely as it will indicate if Finance Minister P. Chidambaram can adhere to his promise of keeping the current account deficit at under $70 billion for the full year.

A higher current account deficit puts pressure on the rupee and a lower figure is seen as an important determinant for a stable rupee. The inter-bank call money rate, the rate at which banks borrow from each other to meet their short-term fund requirement, opened higher at 9.70 per cent from the previous close of 9.45 per cent. The 7.16 per cent government security, which matures in 2023, opened flat from the previous close of Rs 90. Yields were unchanged at 8.71 per cent.

Bureau report

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