Rupee higher; bonds at 3-month high

The rupee is higher with activity both on the bid and offer sides, with mainly foreign banks on the sell side and a large state-run bank being a buyer.

The pair has traded in a 61.45-61.54 range, last 61.51/52 versus Monday close of 61.62/63.

Foreign banks have been buyers of $2.8 billion of rupee debt in January.

Currency dealers see the rupee in the range of Rs 61.30 to Rs 61.70 today.

Government bonds rose to new 3-month highs on a report quoting an unnamed finance ministry official as saying that the fiscal year borrowing may be less than earlier budgeted if fiscal deficit is kept in check.
 

The benchmark 10-year bond yield fell 5 bps to 8.47%, its lowest since October 11.