Rupee drops to one-month low

The rupee dropped to the lowest level in almost a month on speculation that the central bank is set to raise borrowing costs for the seventh time this year, slowing economic growth and damping demand for the nation’s assets.

The rupee declined 1.3 percent to 49.8075 per dollar in Mumbai, according to data compiled by Bloomberg. It touched 49.8163 earlier, the weakest level since Sept. 23. Foreign investors sold a net $72 million worth of Indian shares this month to Oct. 19, exchange data show, the third straight month of a cut in holdings.

BONDS WEAKEN
Government securities finished lower on selling by banks and companies. The 7.80 per cent government security maturing in 2021 eased further to Rs 93.74 from Rs 93.81, while its yield rose to 8.79 per cent from 8.77 per cent yesterday. The 7.83 per cent government security maturing in 2018 declined to Rs 95.36 from Rs 95.42 previously

CALL RATE STABLE
The call rate continued to rule stable at the overnight call money market here on Thursday on lack of any major movement. The overnight call money rate concluded stable at its overnight closing level of 8.30 per cent. It moved in a range of 8.30 per cent and 8.00 per cent.