Bond prices, which are inversely related to yields, have rallied strongly following finance minister Nirmala Sitharaman’s budget announcement of a sovereign bond issue by the government to meet its expenditure. Besides, expectations of more rate cuts by the Reserve Bank of India (RBI) have grown. The forecast, earlier, was of the central bank at best going for one more rate cut of 25 basis points this year. In its statement on developmental and regulatory policies last month, the central bank had announced the formation of such a panel. Rupee fallsThe rupee on Tuesday depreciated 17 paise to close at 68.71 against the dollar because of rising crude oil prices and foreign fund outflows.

Source: The Telegraph July 16, 2019 19:07 UTC