Thursday 12 December 2013

The Rupee Fell And Bonds Yields Surged On Friday After Retail Inflation Spiked,

The rupee fell and bonds yields surged on Friday after retail inflation spiked, raising bets of a rate hike at the RBI's policy meeting next week.


The rupee fell to as much as 62.18 to a dollar and was last trading at 62.14/15. It had last closed at 61.81/82.


Bond yields surged as traders factored in the prospect of the third rate hike by Reserve Bank of India governor Raghuram Rajan.


The 10-year bond yield was up 7 basis points at 8.92 percent.


Sharply higher food prices drove up retail inflation to 11.24 percent in November from 10.17 percent in October, data released Thursday showed.


Source : in.reuters.com





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