Home / Business / Money / Rupee posts biggest gain vs dollar in 2 yrs, bonds rally

Rupee posts biggest gain vs dollar in 2 yrs, bonds rally

The Indian rupee ended at 65.67/68 per dollar from its 66.4550/66.4650, its strongest level since August 20. For the day, the rupee rose 1.2% against the dollar, its biggest daily gain since September 19, 2013.

The rupee posted on Friday its biggest daily gain in two years, while bond yields fell to a near three-month low, as the Federal Reserve’s decision to hold US interest rates was seen as paving the way for the Reserve Bank of India to ease its monetary policy later this month.

The Indian rupee ended at 65.67/68 per dollar from its 66.4550/66.4650, its strongest level since August 20.

For the day, the rupee rose 1.2 percent against the dollar, its biggest daily gain since September 19, 2013. For the week, the rupee gained 1 percent, snapping a two-week losing streak.

The domestic currency benefitted from a weaker dollar as well as hopes that a rate cut from the RBI would boost investor confidence.

The 10-year benchmark bond yield closed down 5 basis points to 7.70 percent, its lowest level since June 22.

For the week, the 10-year bond yield fell 0.9 percent.

Indian markets were closed on Thursday for a local holiday.

Leave a Reply

x

Check Also

Rupee recovers 6 paise to 67.01

The rupee today recovered some lost ground by rising 6 paise to ...

Notes ban to have positive impact on economy

NEW DELHI: The government’s demonetisation move has led to widespread adoption of ...