Mumbai: The Indian rupee weakened past 64 per dollar, while bond yields inched up on Monday, indicating that stability is yet to return to the financial markets.
The rupee was trading under pressure, reversing most of its gains seen on Friday, when it rebounded sharply ending a five-day losing streak.
At 3.44pm, the rupee was trading at 64.42 per dollar, down 1.66% from its Friday’s close of 63.35, while India’s benchmark BSE Sensex provisionally closed at 18,539.13 points, up 0.11%. The Indian currency opened the session at 63.69 per dollar and fell to as low as 64.46 per dollar.
Bond yields rose, with the yield on India’s benchmark 10-year ‪bond trading at 8.308%, up 0.64% from Friday’s close of 8.256%. Bond yields and price move in opposite directions.
On Saturday, finance minister met foreign institutional investors (FIIs) and top bankers to discuss present market conditions and steps taken by the government to contain fiscal and current account deficits.
The rupee had rebounded on Friday primarily due to the assurance of finance minister P. Chidambaram that the government was in control of the fiscal situation and had no intention to impose capital controls.
