Rupee held this week?s losses after Infosys Technologies, the nation?s second- biggest software exporter, reported a drop in quarterly earnings.
The currency declined by as much as 0.4% in intraday trading on concern India?s export earnings will shrink as Europe?s debt crisis hampers the global economic recovery. Infosys said net income fell 2.6% from a year earlier to Rs 1,490 crore ($318.5 million) in the last three months.
?Infosys earnings have disappointed financial markets and raised concerns about the impact of the global slowdown on trade,? said Roy Paul, deputy general manager at Federal Bank. ?The rupee is lower following the weaker opening in stocks.?
The rupee was at 46.7825 per dollar compared with 46.7775 on Monday, according to data compiled by Bloomberg. It has lost 0.3% this week. The rupee is Asia?s worst-performing currency this month with a 0.7% decline.
Also, 10-year bonds slipped on concern investors will refrain from adding to their positions before the data that economists forecast will show inflation accelerated to a three-month high in June.
Yields rose after the government said Monday it will sell Rs 13,000 crore ($2.8 billion) of notes maturing in 2017, 2022 and 2027 on July 16. The wholesale price index increased 10.8% last month from a year earlier, after climbing 10.2% in May, according to the median estimate in a Bloomberg survey of economists.
?Some clarity will emerge on the interest-rate front after the inflation data is published,? said Mukesh Kumar, a Mumbai-based fixed income trader at State Bank of Bikaner & Jaipur. ?Demand is also likely to be damped before bond auctions.?
The yield on the 7.80% note due May 2020 rose one basis point, or 0.01 percentage point, to 7.62%, according to the central bank?s trading system. The price fell 0.06, or 6 paise per Rs 100 face amount, to Rs 101.21.