Rupee volatility at four-month low

Implied volatility in India’s rupee, a measure of exchange-rate swings used to price options, held at the lowest level in almost four months on optimism the US and European policy makers will undertake more stimulus.

The rupee advanced 0.1 per cent in the spot market to 55.63 per dollar, compared with 55.66 at the end of July, data compiled by Bloomberg show. It reached a record low of 57.33 in June.

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 edged up to Rs 99.93 from Rs 99.92 yesterday, while its yield held steady at 8.34 per cent. The 9.15 per cent G-sec maturing in 2024 moved up to Rs 105.79 from Rs 105.74, while its yield softened at 8.38 per cent from 8.39 per cent. The 8.79 per cent G-sec maturing in 2021 gained to Rs 102.80 from Rs 102.75, while its yield eased to 8.34 per cent from 8.35 per cent. However, the 8.15 per cent G-sec maturing 2022 declined to Rs 99.80 from Rs 99.82 previously, while its yield inched up to 8.18 per cent from 8.17 per cent.

Call rates recover
Call rates recovered here on Wednesday on fresh demand from borrowing banks. The rate finished higher at eight per cent from yesterday’s closing level of 7.95 per cent.