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The rupee shed 16 paise to end weaker at 62.57 a dollar against the previous close of 62.41 as the US Federal Reserve announced a further $10-billion reduction in its bond buying programme to $65 billion a month.
The stimulus reduction is in addition to the $10-billion cut announced by the US Fed earlier in December.
Sugandha Sachdeva, Assistant V-P, Currency Research, Religare Securities, said, “Economic signals from the US have reinforced the stance that Fed would continue trimming the stimulus in measured steps.
“Moving forward, the effort of the US Fed to gradually wind down the US asset purchase program is expected to harden the dollar. The rupee is likely to further weaken towards the 64-64.50 zone in near term.”
During intra-day trade, the domestic unit touched a high of 62.54 and a low of 62.90.
Call rate The inter-bank call money rate, the interest rate at which banks borrow short-term money from each other, ended lower at 7.65 per cent against the previous close of 8 per cent.
Yield on the benchmark 8.83 per cent government bond maturing in 2023 hardened to 8.82 per cent from the previous close of 8.77 per cent.
Prices fell to 100.03 against the previous close of ₹100.50 Our Bureau
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