The home currency trimmed some of its gains as state-run banks have bought dollar on behalf of central bank to curb runaway rupee gains, according to a Bloomberg report. The rupee closed at 65.02 a dollar, up 0.47% from its previous close of 65.32.The home currency opened at 64.75, and touched a high of 64.63 , or up 1.08%—its biggest gain since 14 March in intraday. Meanwhile, Bond prices erased all the gains and closed little changed. Although we doubt we will see a runaway rally just yet, we certainly see value on offer in the bond market and domestic investor positioning is light. In a recent analysis of liquidity conditions in India we concluded that OMO sales are likely to pause in December.

Source: Mint November 17, 2017 04:07 UTC