Rupee touches 51.16

Updated: Mar 31 2009, 05:53am hrs
Indias 10-year bonds fell for a seventh day, the longest losing streak in almost two months, on speculation increasing government debt sales will reduce demand for existing securities.

The yield on the 6.05% note due February 2019 added 6 basis points to 7.08% as of the 5:30 p.m. close in Mumbai, according to the central banks trading system. That is the highest since November 25. The price fell 0.39 per 100 rupee face amount to 92.80. A basis point is 0.01 percentage point.

Yields on benchmark notes due 2019 climbed to the highest since November after the central bank last week said India plans to sell a record Rs 2.41 lakh crore($47 billion) of bonds in the first half of the year starting April 1.

The rupee dropped 1.1% to 51.16 per dollar at the 5 p.m. close in Mumbai, its biggest drop since March 2, according to data compiled by Bloomberg.

The currency is headed for a fifth quarter of declines, the longest run of losses since 2002, and was little changed from the end of February.

Bloomberg