Public CompanyRe rises from six-week low
Rupee rose for the first time in four days on speculation exporters took advantage of the currency’s slide to a six-week low to repatriate overseas income.
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The rupee reversed earlier losses as a six-day rally in the benchmark stock index, the longest winning streak in more than four months, prompted some companies to bet that rupee losses are limited. The ICE’s Dollar Index, which tracks the greenback against the currencies of six major US trading partners, slipped after climbing the most in more than a week yesterday.
The rupee strengthened to 48.9225 per dollar at the 5 p.m. close in Mumbai, from 48.935 yesterday, according to data compiled by Bloomberg. The currency earlier touched 49.055, the lowest intraday level since July 13.
Offshore contracts indicate bets the rupee will trade at 49 to the dollar in a month, compared with expectations for a rate of 48.99 yesterday. Forwards are agreements in which assets are bought and sold at current prices for future delivery. Non- deliverable contracts are settled in dollars rather than the local currency.
10-year bonds slide
10-year bonds fell the most in more than seven weeks on concern that rising government debt sales will damp demand for existing securities. The yield on the 6.9 per cent note due July 2019 jumped 16 basis points to 7.29 per cent at the close in Mumbai, according to the central bank’s trading system.