The rupee erased its earlier losses during the day to end almost flat at 62.02 to the dollar against Friday’s close of 62.03 due to the American dollar's gains against other currencies overseas.

In intra-day trade, the domestic unit touched a high of 62.25 and a low of 62.02. According to market watchers, dealers avoided taking long positions ahead of the Reserve Bank of India’s bi-monthly monetary policy review tomorrow.

Bond yields slip to 8.03%

Yield on the benchmark 10-year bond hit 8.03 per cent, the lowest level since August 2013, on continued fall in global crude prices. Brent crude prices were near four-year lows after oil producers’ club OPEC decided to not cut oil output. Harihar Krishnamoorthy, treasurer at FirstRandBank, said, “The market believes that the OPEC’s decision to not cutback production will last for some time.” According to NS Venkatesh, Executive Director (Treasury & International Banking), IDBI Bank, the market has been showing irrational exuberance and if the RBI does not cut rates in the policy announcement scheduled tomorrow, it may lead to hardening of bond yields to 8.15 per cent levels.

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