Rupee at highest since Aug 2015, rallies for 2nd day
* RBI held rates on Thurs, warned about inflation
* Bonds, shares fall; geopolitical concerns weigh
Bonds extended falls, with sentiment also hit after the RBI said it would start curbing excess liquidity after the government's move to withdraw higher-value bank notes from circulation led to a surge in bank deposits.
* RBI held rates on Thurs, warned about inflation* Bonds, shares fall; geopolitical concerns weigh
The Indian rupee hit a more than 1-1/2 year high on Friday after the central bank held its policy rate and expressed concerns about inflation, raising expectations it would no longer cut rates this year, while bonds fell and shares edged lower.
The Reserve Bank of India held the repo rate INREPO=ECI at 6.25 percent on Thursday, as widely expected, and raised its inflation forecasts, increasing expectations it could even tighten should prices accelerate. the meeting, 21 of 34 economists had predicted stable prices would allow the RBI to cut rates this year. rupee strengthened to as much as 64.32 per dollar, its highest since August 2015, after also rallying on Thursday. It was last trading at 64.4025/4075 compared with Thursday's close of 64.52.
Bonds extended falls, with sentiment also hit after the RBI said it would start curbing excess liquidity after the government's move to withdraw higher-value bank notes from circulation led to a surge in bank deposits.
The benchmark 10-year bond yield IN069726G=CC rose 5 basis points to 6.82 percent after rising 12 basis points on Thursday. For Any Info : www.paceresearchindia.com and Call : 8817774774
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