The local unit closed at 71.35 per dollar on Friday.“Overall macro-economy is not stacking up well in terms of fiscal problems and sluggish growth,” said Ashish Vaidya, head of trading at DBS Bank. “India has become a counter-cyclical story where we attract foreign inflows. A basis point is 0.01 percentage point.Nearly three-fourths of the participants expect the benchmark bond yield to rise to 6.75 per cent.“Yields cannot afford to drop amid economic challenges and fear of higher borrowing,” said Bhaskar Panda, executive vicepresident at HDFC Bank . The RBI conducted a tiny version of “Operation Twist” two weeks ago, which brought down elevated bond yields. It will a conduct similar buy and sell of longer- and shorter-duration securities on Monday.

Source: Economic Times December 30, 2019 02:48 UTC