Subhadip's Feed
Jul 29, 2013

Indian rupee snaps 3 days of gain ahead of RBI rate decision

MUMBAI, July 29 (Reuters) – The Indian rupee fell for the
first session in four on Monday on the back of dollar demand
from oil importers and caution ahead of a central bank policy
review that may give cues about its stance after recent measures
to defend the currency.

The Reserve Bank of India is widely expected to keep rates
and the cash reserve steady when it unveils monetary policy on
Tuesday. Forex dealers will keenly watch, instead, if the
central bank indicates more measures to stabilise the currency
or gives a timeframe for its current action.

Jul 25, 2013

Bonds gain most in three years; Friday’s debt sale eyed

MUMBAI (Reuters) – Government bonds rose the most in over three years on Thursday, snapping three days of losses, as the central bank paid high yields in its sale of short-end bills, signalling its resolve to bolster the rupee by draining liqudiity.

The Reserve Bank of India, through two successive sales of bills in as many days at yields of over 11 percent, reinforced expectations of bond dealers that it would walk the talk in ensuring short-term rates remain high as the central bank tries to curb rupee speculation.

Jul 25, 2013

RBI shows resolve on rupee ahead of key debt sale

MUMBAI (Reuters) – India’s defence of its currency is showing signs of working as the central bank pays the highest yields for short-term debt in years, although its resolve faces a bigger test on Friday, at a sale of longer-dated bonds.

The rupee rose for a second session on Thursday after the Reserve Bank of India agreed to pay double-digit yields to sell 52 billion rupees in one- and two-month debt, in its second sale of short-term debt in as many days.

Jul 25, 2013

India’s central bank shows resolve on rupee ahead of key debt sale

MUMBAI (Reuters) – India’s defense of its currency is showing signs of working as the central bank pays the highest yields for short-term debt in years, although its resolve faces a bigger test on Friday, at a sale of longer-dated bonds.

The rupee rose for a second session on Thursday after the Reserve Bank of India agreed to pay double-digit yields to sell 52 billion rupees ($880.01 million) in one- and two-month debt, in its second sale of short-term debt in as many days.

Jul 24, 2013

Bond yields, rate swaps surge as RBI curbs cash again to boost rupee

MUMBAI (Reuters) – Government bond yields rose to their highest in a year and near-end swap rates surged to their highest levels since the 2008 financial crisis on Wednesday after the Reserve Bank of India (RBI) further squeezed cash conditions as part of its defence of the beleaguered rupee.

The measures that came barely a week after similar tightening steps on July 15 sent a clear signal to bond markets that the RBI is willing to live with higher rates as it sees rupee stability as a priority.

Jul 19, 2013

India rupee defence drives up govt borrowing costs

MUMBAI, July 19 (Reuters) – India’s measures to protect its
currency sent government borrowing costs sharply higher at a
bond auction on Friday and dealers said the central bank
appeared to have intervened anew in the forex market in support
of the rupee.

Earlier, the embattled currency fell close to where it had
been before a dramatic rescue mission by the central bank late
on Monday, which sent bond yields surging and crimped the growth
outlook for Asia’s third largest economy.

Jul 19, 2013

Rupee gains on rumoured RBI intervention; second week of win

MUMBAI (Reuters) – The rupee gained on Friday after the RBI was rumoured intervening late in the session to support a currency that had floundered and been on the verge of wiping out all gains since policymakers’ measures to drain liquidity.

The currency gained 0.3 percent for the week, marking its second consecutive weekly gain, even as traders said the Reserve Bank of India’s measures to raise short-term interest rates to support the rupee unveiled late on Monday have not yet had a meaningful impact.

Jul 19, 2013

India braces for next test of rupee defence

MUMBAI/NEW DELHI (Reuters) – The RBI’s strategy to staunch the rupee’s slide faced further setbacks on Friday, with investors betting a 150 billion rupee bond auction would struggle and the currency trading where it was before this week’s rescue mission was launched.

An extended stand-off between the Reserve Bank of India and investors would raise the prospect of it taking other steps to generate demand for the rupee, such as increasing the level of reserves banks must hold, issuing offshore bonds or even raising policy interest rates.

Jul 19, 2013

India braces for next test of rupee defence with bond sale

MUMBAI/NEW DELHI, July 19 (Reuters) – The Indian central
bank’s strategy to staunch the rupee’s slide faced further
setbacks on Friday, with investors betting a 150 billion rupee
($2.5 billion) bond auction would struggle and the currency
trading where it was before this week’s rescue mission was
launched.

An extended stand-off between the Reserve Bank of India and
investors would raise the prospect of it taking other steps to
generate demand for the rupee, such as increasing the level of
reserves banks must hold, issuing offshore bonds or even raising
policy interest rates.

Jul 18, 2013

India’s rupee defense dented as bond sale falls short

MUMBAI, July 18 (Reuters) – The Indian central bank’s effort
to support the rupee by sucking liquidity from the market
through a $2 billion bond sale fell short on Thursday as it
accepted just over one-fifth of the bids, adding pressure on it
to find other ways to mop up rupees.

The open market operation was part of the Reserve Bank of
India’s three-pronged plan unveiled late on Monday to prop up a
rupee that has lost about 10 percent against the dollar since
the start of May.