Rupee rises from one-week low

The rupee gained from a one-week low as the benchmark share index rebounded, easing concern that foreign funds will slow share purchases.

The rupee gained 0.1 per cent to 48.36 per dollar at the close of trade in Mumbai. It is still the worst-performer among Asia's 10 most-traded currencies this month, with a 0.9 per cent loss. A long position is a bet an asset will rise, while a short position is a wager it will fall.

Offshore contracts indicate bets the rupee will trade at 48.45 to the dollar in a month, compared with expectations for a rate of 48.47 yesterday. Forwards are agreements in which assets are bought and sold at current prices for future delivery.

Bonds decline
Bonds fell for a second day before a debt auction tomorrow, amid concern the governments plans to raise a record Rs 4.51 lakh crore ($93 billion) from sales this financial year will drive up borrowing costs.

The yield on the benchmark notes due in 2019 rose the most in at least two weeks as the finance ministry's plans for the year starting April 1 include the sale of Rs 12,000 crore of bonds every week till September 4. Bonds also fell on speculation that investors preferred equities after companies reported better-than-forecast earnings.

The yield on the 6.90 per cent note due July 2019 rose seven basis points to 6.97 per cent at the 5:30 p.m. close in Mumbai, according to the central banks trading system.

Government bonds lost 3.6 per cent this year, the worst performance among 10 local-currency debt markets tracked by an index compiled by HSBC Holdings.