Rupee snaps two-day gains

The rupee snapped a two-day advance before data forecast to show Asia’s third-largest economy expanded at the slowest pace in three years.

The rupee was little changed at 55.63 per dollar in Mumbai, compared with 55.62 yesterday, according to data compiled by Bloomberg. The currency fell as much as 0.2 per cent earlier.

A government report tomorrow will show gross domestic product increased 5.2 per cent in the three months ended June 30, according to the median of 39 estimates in a Bloomberg News survey.

Bonds react downward
Government bonds reacted downwards on selling pressure from banks and companies.

The 8.33 per cent government security maturing in 2026 dropped to Rs 99.80 from Rs 99.93 previously, while its yield edged up to 8.35 per cent from 8.34 per cent. The 8.15 per cent government security maturing in 2022 fell to Rs 99.69 from Rs 99.80, while its yield inched up 8.19 per cent from 8.18 per cent.

Call rates rule stable
Call money rates remained steady at the overnight call money market here on Thursday as demand from borrowing banks matched supplies. The call money rate finished stable at eight per cent. It moved in a range of 8.05 per cent and 7.80 per cent.

The Reserve Bank of India under the Liquidity Adjustment Facility purchased securities worth Rs 338.65 billion from 16 bids at the one-day repo auction at a fixed rate of eight per cent.