The rupee was trading weak in afternoon trades amid month-end dollar demand. At 1:00 pm, the rupee was trading at Rs 59.79 compared with previous close of Rs 59.41 per dollar. Just before the announcement of the policy it was quoting at Rs 59.55. According to dealers, the monetary policy review of the Reserve Bank of India (RBI) was very much on expected lines due to which it did not impact the rupee movement. According to dealers, the rupee may not touch Rs 60 per dollar as dollar sale by state-run banks will help the rupee. Meanwhile, bond yields fell sharply after the policy as traders were concerned that RBI may take more liquidity tightening moves and may even hike the repo rate. The yields on the 10-year benchmark government bond was quoting at 8.04% at 1:00PM. The yield was quoting at 8.16% just before the policy. It had ended at 8.13% yesterday.

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