Re drops 27 p on higher demand from importers

Written by Agencies | Mumbai | Updated: Nov 2 2013, 03:19am hrs
The rupee on Thursday fell 27 paise to 61.50 against the dollar on heavy month-end demand from importers for the US currency, which strengthened overseas after the Federal Reserve indicated it may taper its stimulus programme earlier than expected.

The rupees decline was limited by a rally in local stocks, which took the key Sensex index to a new closing high, and continued foreign fund inflows. It was the second month of gains for the rupee, which rose 1.8% in October after appreciating 4.7% in September.

Bonds fall

The benchmark 10-year bond yields closed 5 bps higher at 8.62%. Volumes remained low at R18,170 crore. Yields, however, dropped 15 basis points in October. The benchmark five-year swap rate closed 1 bp higher at 8.18%, while the one-year rate ended 1 bp up at 8.39%.