The rupee strengthened from its lowest level in almost four weeks, after provisional data showed exports increased in January for the first time in nine months.
It rose 0.1 per cent to 53.82 a dollar here after falling as much as 0.1 per cent earlier, according to data compiled by Bloomberg. It touched 54.11 yesterday, the lowest level since January 18. The currency will drop to 54 in 12 months, Barclays predicts. One-month implied volatility, a gauge of expected moves in the exchange rate used to price options, fell one basis point, or 0.01 percentage point, to 9.27 per cent.
The rise in exports was the “silver lining,” analysts at Barclays Plc, including Singapore-based Nick Verdi, wrote in a research report on Wednesday.
Bonds rise to over two-week high
Government bond prices rose to their highest in over two weeks on Wednesday after the central bank said it would buy debt through open market operations, although caution remained ahead of January wholesale price inflation. The benchmark 10-year bond yield closed three basis points lower, at 7.84 per cent.
Call rate steady
The overnight cash rate was steady at 7.80/7.90 versus its previous close of 7.75/7.85 per cent.
