Rupee sees worst month in more than a year

The rupee completed its worst month since May 2010, as slowing economic growth spurred sales of the nation’s assets by foreign investors.

Asia’s third-largest economy expanded 7.7 per cent last quarter from a year earlier, the smallest gain since 2009, a government report showed on Tuesday. Foreign funds cut holdings of Indian shares by $2.3 billion this month through August 29, the most since October 2008. The rupee fell 4.1 per cent this month to 46.09 per dollar as close in Mumbai, the worst performance among Asia’s 10 most-traded currencies, according to data compiled by Bloomberg. It declined 0.1 per cent on Tuesday.

BONDS END MIXED
Government bonds closed narrowly mixed on alternate bouts of buying and selling. The 7.80 per cent government security maturing in 2021 firmed up to Rs 96.6150 from Rs 96.55 yesterday, while its yield softened to 8.32 per cent from 8.33 per cent. The 8.13 per cent government security maturing in 2022 moved up to Rs 97.90 from Rs 97.87, while its yield eased to 8.42 per cent from 8.43 per cent. The 8.08 per cent government security maturing in 2022 looked up to Rs 97.60 from Rs 97.5650.

CALL RATE EDGES UP
The overnight call money rate on Tuesday finished slightly higher at 8.05 per cent from yesterday’s closing level of 8.00. It moved in a range of 8.20 per cent and 7.90 per cent.