Rupee volatility at 1-yr low on stimulus optimism

Implied volatility in India’s rupee held at the lowest level in a year before the Federal Reserve meets tomorrow, with investors braced for further stimulus that may spur inflows into emerging markets.

The rupee advanced 0.2 per cent to 55.35 per dollar in Mumbai, data compiled by Bloomberg show.

Bond rates end mixed
Government securities (G-sec) ended mixed on alternate bouts of buying and selling.

The 8.33 per cent G-sec maturing in 2026 gained to Rs 100.08 from Rs 100.03 yesterday, while its yield held steady at 8.32 per cent.

The 8.97 per cent G-sec maturing in 2030 moved up to Rs 103.89 from Rs 103.87, while its yield also held stable at 8.54 per cent.

Call rates also finish lower
Call rates declined at the overnight money market here on Tuesday due to lack of demand from borrowing banks. The call money rate finished lower at 8.05 per cent from yesterday’s closing level of 8.10 per cent.