The foreign exchange and money markets settled after showing some knee-jerk reaction to the US Federal Reserve cut of 25 basis points to 4.5% on expectations that more dollars could flow into the markets due to the wider interest rate differentials.
The rupee opened at 39.25 to the dollar as against the previous close of 39.33, but heavy intervention by the RBI took the rupee back to Wednesday?s level of 39.33, dealers said. ?The market had already discounted the Fed rate cut and today, RBI was the only buyer of the greenback,? said a chief dealer at a private bank.
In the government bond market, ten-year benchmark yields fell from the previous close of 7.87% to 7.82-7.83% levels in early trades.