The rupee fell for the first time in three days on concern that accelerating inflation would damp economic growth and reduce corporate earnings.
The currency retreated from a one-week high as the Bombay Stock Exchange’s Sensitive Index fell for a second day. Infosys Ltd, the nation’s second-largest code writer, and Housing Development Finance Corp, the largest mortgage lender, reported this month earnings that missed analysts’ estimates. Inflation rose to 9.44 per cent last month, government data show, the most after Argentina among the Group of 20 nations.
The rupee declined 0.1 per cent to 44.5050 at the close in Mumbai, according to data compiled by Bloomberg. It touched 44.4250 earlier, the strongest level since July 14.
BONDS STEADY
India’s 10-year bond yields held near a one-week high on speculation the central bank will increase interest rates at a policy review on July 26. The Reserve Bank of India (RBI) would raise the repurchase rate by 25 basis points to 7.75 per cent, according to 19 of 21 economists surveyed by Bloomberg. Two forecast no change. The rate was last boosted by a similar amount on June 16 to lower an inflation rate that’s exceeded eight per cent for 18 months.
CALL RATE RECOVERS
THE call rate dropped on the overnight call money market on Thursday. The overnight call money rate moved between 7.70 per cent and 7.45 per cent before closing at 7.55 per cent.
