The Reserve Bank of India (RBI) intervened today in the foreign exchange market, resulting in the rupee gaining by over 10 paise to finish at 45. 23/25 over the previous day's close. | |
| In the bonds market, yields edged lower as 10-year paper closed at 5.28 per cent against 5.30 per cent on Wednesday. This follows lower cut-off yields announced at the twin auctions (together Rs 10,000 crore). |
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| According to dealers, the sale of dollars by exporters led the rupee to gain ground against the dollar. Some banks sold around $100 million in dollars, apparently on behalf of the central bank towards the end of the trading session today. The spot rupee-dollar exchange rate had closed at 45.37/38 to a dollar yesterday. |
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| Dealers attributed the RBI's selling dollars and thereby propping up the rupee to the desire to provide a cushion for oil payments, some of which are due next week. Crude prices closed at $ 40.96 per barrel on the New York Exchange today. |
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