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WEEKAHEAD-Central bank support for Indian rupee winds down

Nov 29 2013, 19:01 IST
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The benchmark 10-year bond yield is seen moving in a 8.95 to 9.10 percent range initially during the week (Reuters) The benchmark 10-year bond yield is seen moving in a 8.95 to 9.10 percent range initially during the week (Reuters)
SummaryIndia's rupee and bonds could see some support on data late on Friday

* India's rupee and bonds could see some support on data late on Friday showing the country's economy grew more strongly than expected in the July-September quarter.

* However, the Indian rupee will start trading without a critical crutch as the central bank ends special currency swap windows to banks raising funds abroad - which had brought $25 billion in inflows since the end of September - on Saturday.

* State-run oil companies are also sourcing most, if not all, of their dollars in markets and not at the special window provided by the RBI.

* In bonds, traders are anticipating the RBI could soon raise the amount banks can borrow from its liquidity adjustment facility (LAF) or the term repo facilities by relaxing the cap on borrowing up to 0.5 percent of deposits.

* The benchmark 10-year bond yield is seen moving in a 8.95 to 9.10 percent range initially during the week.

KEY FACTORS/EVENTS TO WATCH

Mon: HSBC Manufacturing PMI (0500 GMT)

Wed: HSBC Services PMI (0500 GMT)

Fri: Foreign exchange reserves (1130 GMT)

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