Rupee completes 2nd monthly gain

The rupee completed a second monthly advance, as the slowest inflation in more than two years boosted demand for the nation’s assets. The currency extended January’s record gain, as exchange data show foreign investors added $4.8 billion to holdings of Indian shares this month through February 27, the biggest rise since October 2010. Investment in local-currency debt rose by $100 million to an all-time high of $30.3 billion as on February 24. Wholesale prices rose 6.55 per cent in January, the slowest since November 2009, according to government data. The rupee advanced 0.9 per cent this month and 0.1 per cent on Wednesday to 49.02 per dollar in Mumbai. The currency strengthened 7.3 per cent in January, the biggest monthly gain since at least February 1973.

Bonds settle mixed
Government securities (G-Secs) on Wednesday settled mixed on alternate bouts of buying and selling. The 8.79 per cent G-Sec maturing in 2021 rose to Rs 103.88 from Rs 103.79 yesterday, while its yield softened to 8.20 per cent from 8.21 per cent. The 9.15 per cent G-sec maturing in 2024 improved to Rs 106.68 from Rs 106.62, while its yield ruled steady at 8.29 per cent. The 8.19 per cent G-sec maturing in 2020 and the 7.59 per cent G-sec maturing in 2016 were also quoted higher at Rs 99.50 and Rs 97.55, respectively. However, the 7.83 per cent G-Sec maturing in 2018 eased to Rs 97.69 from Rs 97.71, while its yield inched up to 8.32 per cent from 8.31 per cent.