Rupee opens weak at 56.95 on Fed stimulus woes.

MUMBAI, JUNE 6: The rupee nudged towards the 57 mark as it opened lower at 56.95 against the American currency as doubts over continuity of Fed stimulus troubled international market players.

The Indian unit had closed at 56.72 on Wednesday.

The rupee faces challenges from India’s high current account deficit (CAD) and overseas economic data and policy decisions. In June last year, the rupee had touched an all-time low of 57.32.

The Government has tried to put sands into the wheel of India’s galloping CAD by putting several restrictions on gold imports over the past few days. Will it help in bringing down the CAD and help the rupee remains to be seen.

A lower rupee hurts importers because they have to pay more Indian unit for every dollar worth of goods they import.

Call rates, G-Sec

The overnight call money rates opened higher at 7.30 per cent from the previous close of 7.25 per cent.

The 8.15 per cent government security, which matures in 2022, opened almost flat at Rs 104.85 from the previous close of Rs 104.83. Yields were stable at 7.40 per cent.

Source : thehindubusinessline.com