 "Rupee falls as govt puts global bond index plan on hold")
The rupee fell marginally and was trading at 60.87/88 versus its close of 60.85/86 after government sources said plans for inclusion in a global bond index have been put on hold.
Govt has put on ice plans to join major emerging market bond indexes that would require it to remove restrictions on foreign capital inflows, two sources said, signalling easing concerns about the rupee and the balance of payments.
Traders say they were hoping the inclusion plans would materialise sometime over the next year if not immediately, but as they have been put on hold, the wait would likely be longer.
Losses in the Sensex are also aiding sentiment for the pair. The Sensex is trading down 0.5%.
Govt has put on ice plans to join major emerging market bond indexes that would require it to remove restrictions on foreign capital inflows, two sources said, signalling easing concerns about the rupee and the balance of payments.
Traders say they were hoping the inclusion plans would materialise sometime over the next year if not immediately, but as they have been put on hold, the wait would likely be longer.
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Dollar inflows from custodian banks, however, are continuing and should limit the USD/INR pair from going beyond 60.90-60.95 levels, dealers say.
Losses in the Sensex are also aiding sentiment for the pair. The Sensex is trading down 0.5%.