Mumbai: The Indian rupee was trading weak on Thursday afternoon, continuing an element of pessimism that gripped the financial markets early this week after a central bank panel proposed to link the monetary policy to retail inflation, which, if accepted, could keep interest rates high in India for longer than expected.
At 2.45pm, the domestic currency was trading at 61.91, down 0.15% from its previous close of 61.825. During the day, the unit fell to 62.045 but recovered part of the loss.
Bond yields stayed high with the yield on India’s 10-year benchmark bond trading at 8.627%, compared with its Wednesday’s close of 8.609%. Bond yields and prices move in opposite directions.
India’s bellwether equity index, the BSE’s Sensex, was at 21,402.84 points, up 0.32% from the previous close.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 80.878, down 0.35% from the previous close of 81.167.
