The rupee opened weak at 60.25 per dollar against the previous close of 60.17 on the back of dollar demand from importers.

Moodys’ Investors Service and Fitch Ratings expressed doubts over the government’s ability to meet the fiscal deficit target, pointing to the lack of specific details on ways to meet spending and revenue projections.

“The rupee is likely to continue trading in range-bound current levels of 59.50 to 60.10 to the dollar in the near term. In the medium-term range, the USD/INR pair is likely to trade with a slight depreciation bias in the band of 60-62,” Hariprasad MP, Senior Vice-President, Head Treasury, CentrumDirect Ltd, said.

Call rates and bonds

The inter-bank call money rate, the rate at which banks borrow short-term funds from each other to tide over liquidity mismatches, opened higher at 8.95 per cent from the previous close of 8.2 per cent on Thursday.

The benchmark 8.83 per cent government security, which matures in 2023, dropped to ₹100.33 from ₹100.39. Yields rose to 8.77 per cent from 8.76 per cent.

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