The rupee fell to a three-week low as data showing Chinese economic growth was slowing had spurred demand for the perceived safety of the dollar before European leaders began a summit to tackle their debt crisis. The rupee declined one per cent, the most since October 8, to 53.42 a dollar, according to data compiled by Bloomberg.
One-month implied volatility, a measure of exchange-rate swings used to price options, fell nine basis points, or 0.09 percentage points, to 10.59 per cent.
Bonds surge on good demand
Government securities (G-sec) rose on good demand from banks and companies.
The 8.15 per cent G-sec maturing in 2022 climbed to Rs 100.08 from Rs 99.97 previously, while its yield eased 8.14 per cent from 8.15 per cent. The 8.33 per cent G-sec maturing in 2026 advanced to Rs 100.77 from 100.74, while its yield moved down to 8.23 per cent from 8.24 per cent. The 8.19 per cent G-sec maturing in 2020 also rose to Rs 100.07 from Rs 100, while its yield went down to 8.17 per cent from 8.19 per cent.
Call rates firm up
Call rates firmed up at the overnight market on sustained demand from borrowing banks. The rate finished higher at 8.12 per cent from 8.10 per cent yesterday.
