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Rupee edges lower, ahead of RBI policy review

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Agencies Mumbai
Last Updated : Oct 29 2013 | 1:06 AM IST
The rupee edged down on Monday, a day before the Reserve Bank of India (RBI) policy review, when it is widely expected to raise interest rates to fight inflationary pressures even as the economy grows at its slowest in a decade. RBI's macroeconomic report released after the close of markets said upside risks to food inflation would remain and it expected the retail and wholesale price inflation to remain above comfort levels.

The partially convertible rupee closed at 61.52/53 a dollar compared to 61.46/47 on Friday.

Bonds turn bearish
Government securities (G-secs) turned bearish on selling pressure from banks and companies. The 7.16 per cent G-sec maturing in 2023 dropped to Rs 90.40 from Rs 90.85 previously, while its yield rose to 8.66 per cent from 8.58 per cent. The 8.28 per cent G-sec maturing in 2027 declined to Rs 94.64 from Rs 95.27.

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Call rates end higher
Call money rates ended higher at the overnight market due to good demand from borrowing banks. The rates ended higher at 8.95 per cent from 7.25 per cent last Friday.


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First Published: Oct 29 2013 | 12:17 AM IST

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