PFC had earlier withdrawn a ₹3,000-crore, three-year bond issuance, and ₹3500 crore, 15-year bond issuance on November 25 and December 10 respectively due to elevated corporate bond yields
The Reserve Bank of India will inject nearly Rs 3 trillion through open market operations and a USD/INR buy-sell swap to offset liquidity drained by forex intervention and seasonal factors
RBI net sold $11.8 billion in October and supplied dollars to cap rupee weakness near 88.80/$, even as its net short forward position rose to $63.6 billion, the bulletin showed
The rupee slipped to 89.72 per dollar on Monday on strong dollar buying in the NDF market, before trimming losses to close at 89.65 as dealers flagged a shift in RBI's approach
The rupee rose 0.73% to 90.37 per dollar, snapping a five-session fall, as dealers cited likely RBI dollar sales to curb volatility after the currency hit fresh lows
The first leg of the swap will be settled on Thursday, when the RBI will inject rupee liquidity into the banking system. The transaction will be reversed after three years
Rupee depreciated to a fresh all-time low as foreign outflows and uncertainty over the US-India trade deal pressured sentiment, while an RBI OMO purchase auction helped soften government bond yields
The 10-year benchmark government bond yield has risen 14 bps since the RBI's 25 bps repo rate cut, as traders price in the move as the last of the cycle and foreign investors unwind positions
Bank of India raised Rs 2,500 crore via 10-year tier II bonds at a 7.28 per cent cut-off with a call option after five years; HUDCO raised Rs 1,905 crore via seven-year bonds at 6.98 per cent
RBI has proposed that authorised dealers give retail users a full break-up of transaction costs for forex cash, tom and spot contracts, including all fees, exchange rates and conversion charges
