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Rupee, bonds flat as RBI keep rates on hold, stays hawkish

PTI  Mumbai, June 17, 2013
First Published: 10:06 IST(17/6/2013) | Last Updated: 11:48 IST(17/6/2013)

The rupee held onto its losses on Monday, while stocks edged lower and interest rate swaps rose, after the Reserve Bank of India kept the country's key lending rate unchanged while warning of upwards risks to inflation.


The outcome was expected, although some analysts had seen an outside chance of a rate cut or a cut in the cash reserve ratio.

The rupee was trading at 57.81/82 per dollar as of 0542 GMT, weaker than its 57.5150/5250 close on Friday after briefly falling to as much as 57.90 after the RBI decision.

The rupee is not too far from a record low of 58.98 hit last week.

The BSE share index was down 0.2%, while the 10-year bond yield was up 2 basis points (bps) at 7.33% from its previous close. The five-year swap rate was up 4 bps at 7.01% from its Friday close.

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