Forex Kitty Up $8 Bn In 3 Months, Yields Take Wing

It was a one-way street for both gilts and corporate bonds last week with the yields shooting northwards.

The main factors that pushed the yields up were higher inflation - 4.42 per cent -, perception that the interest rates have bottomed out, and concern due to the continuing US-Iraq standoff.

However, the rupee ended at a 16-1/2 month closing high of 47.7000/7050 per dollar on the back of strong trade and investment flows, upgrade by credit rating agency Moody